by Stefania Fumo
ROME, Sept. 25 (Xinhua) -- Italian luxury fashion house Versace has agreed to be bought out by multinational fashion company Michael Kors, the two companies announced Tuesday.
In a statement, Michael Kors Holdings Ltd. confirmed that a definitive agreement has been signed to purchase Gianni Versace SpA for 1.83 billion euros (2.12 billion U.S. dollars).
"This is a very exciting moment for Versace," said Donatella Versace, the artistic director of the brand since 1997.
"I am proud that Versace remains very strong in both fashion and modern culture....this next step will allow Versace to reach its full potential."
"We believe that being part of this group is essential to Versace's long-term success," added Versace, who will remain as creative director and who will become a minority shareholder in the new company to be named Capri Holdings Ltd.
Founded in 1978 in Milan, Versace is a worldwide symbol of Italian luxury and style.
It designs, manufactures, distributes and retails fashion and lifestyle products including haute couture, pret-a-porter, accessories, jewellery, watches, eyewear, fragrances, and home furnishings.
Foreign companies have bought 29 Italian luxury fashion houses in deals totaling 8.8 billion euros over the past decade, according to Il Sole 24 Ore business and financial paper.