Luxury lawyers line up for Jimmy Choo $1.35bn acquisition
Global fashion house Michael Kors is to acquire luxury footwear and accessories brand Jimmy Choo with the city’s top luxury law firms on hand to advise.
The high profile deal is the latest in the luxury law sector which has seen a number of M&A transactions recently. Legal heavyweights Slaughters and May and Paul Weiss are representing Michael Kors in the deal with private equity head Jeff Twentyman heading up the Slaughters team and Paul Weiss New York corporate partner Justin Hamill on the US side. Jimmy Choo’s longterm law firm Freshfields Bruckhaus Deringer is representing the luxury shoe retailer. M&A partner Chris Mort represented Jimmy Choo when the company floated on the London Stock Exchange three years ago. Other Freshfields partners on the acquisition include corporate partner Alison Smith and competition partner Alex Potter.
The transaction has been approved by the boards of directors of both Michael Kors Holdings. Jimmy Choo was launched in 1996 and has some 150 company-operated retail stores, 560 multi-brand doors and more than 60 franchise stores in premier locations worldwide. The company has a strong presence in Europe, the Middle East, the Americas and Asia. In addition, Jimmy Choo continues to invest significantly in its online platform, which has experienced strong revenue growth in recent years. The company also continues to build its presence in accessories and men’s footwear.
According to a joint statement, the acquisition of Jimmy Choo is expected to deliver a number of benefits, including the opportunity to grow Jimmy Choo sales to $1 billion; a more balanced portfolio with greater product diversification; an enhanced positioning in the attractive and growing luxury footwear segment; the opportunity to grow in the men’s luxury footwear category; further expansion in the luxury accessories market; greater exposure to global markets, particularly the fast-growing market in Asia and the potential to create long-term operational synergies.
Leadership to remain
Mr Idol added that the leadership at Jimmy Choo would remain constant: ‘Pierre Denis will continue in his role as Chief Executive Officer of Jimmy Choo. He has led the company since 2012, during which time Jimmy Choo experienced compounded sales growth of 11 per cent annually. Pierre brings more than 25 years of experience and a strong track record with global fashion luxury brands. Additionally, Creative Director Sandra Choi will continue to lead the creative and design teams at the company. Sandra has been with Jimmy Choo since its inception and has been the sole Creative Director since 2013. Her groundbreaking vision and fashion artistry have created a truly iconic and internationally recognised luxury brand. Mr Denis, Miss Choi and the rest of the highly-talented management team have done a tremendous job and this continuity of leadership will ensure that the DNA of Jimmy Choo is maintained as we work together to continue to grow the brand globally.’
So much more that can be delivered
Pierre Denis, Chief Executive Officer of Jimmy Choo, said: ‘We are convinced that there is so much more that can be delivered in the years ahead. We look forward to working closely with the leadership and team at Michael Kors Holdings Limited to further develop our iconic brand. Our two companies share the same vision of style and trend leadership.’