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Michael Kors slips on Jimmy Choo in $1.35 billion purchase

Tamara Mellon on pay equity
Tamara Mellon on relaunching brand, pay equity 04:25

American fashion brand Michael Kors is putting its best foot forward. 

Michael Kors (KORS) has struck a $1.35 billion deal to buy luxury shoemaker Jimmy Choo, a brand that gained a following thanks to its designs as well as pop culture references such as in the TV show "Sex and the City."

Kors says that London-listed Jimmy Choo is "the ideal partner" that will be bolstered with further development of its online presence. Jimmy Choo CEO Pierre Dennis will stay in his job. Creative Director Sandra Choi will also stay to lead creative and design teams.

The deal gives Jimmy Choo shareholders 2.3 pounds in cash for each share, a premium of 36.5 percent on the firm's share price of 1.685 pounds on April 21.

John Idol, CEO of Michael Kors, says the handbag maker believes "that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built."

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