Legendary shoe brand Jimmy Choo, which first put itself up for sale in April, is to be bought by American designer Michael Kors for £896m.
Shares in the British footwear firm closed up 17 per cent to 228.25p on Tuesday.
John Idol, chairman and chief executive of Michael Kors, said: “We believe 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 over the last 20 years.”
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Michael Kors himself, the designer who founded the eponymous brand, said he admired the “glamorous style and trendsetting nature” of Jimmy Choo designs.
But Kors, who remains chief creative officer of Michael Kors, will not take over design at Jimmy Choo, as creative director Sandra Choi is set to stay in her post.
Current Jimmy Choo chief executive Pierre Dennis will also stay in his role, reporting to leadership at Michael Kors.
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Dennis commented: “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. Our luxury heritage is the foundation of Jimmy Choo and we will continue to bring our brand vision to consumers globally.”
Michael Kors beat off rumoured competition from private equity firms Hony Partners and CVC. The final offer for the brand was 230p per share.
The acquisition will give the parent company greater exposure to global markets, especially the fast-growing Asian market.
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Foreign companies flock to UK for M&A
The deal comes at a time when companies from across the world are flocking to the UK for takeover deals. According to Dealogic, there have been 1,455 UK-targeted foreign deals worth $124bn so far this year.
While the number of deals has fallen from the same date last year, the total value of the transactions is the second highest it has been at this time of year on Dealogic records, behind only 2015.
Meanwhile, Deloitte figures show that the UK-US deal corridor is thriving in 2017, despite the value of American takeovers in Britain falling year-on-year in the first half of the year, from $15.9bn to $7.7bn.
“This deal corridor between the US and UK is one of the most significant in the world,” said Cahal Dowds, vice chairman of Deloitte UK.
“The devaluation of sterling is the icing on the cake rather than the catalyst for US acquirers to buy in the UK. They would have been tracking UK companies for five to 10 years and the UK market is a familiar one to them already.
“These acquisitions are powered by record cash reserves, and low interest rates keeping debt cheap in the US.
“Acquisitions are seen as a faster way to changes revenue lines than expanding organically, and there are many great UK companies US acquirers are willing to pay a premium for.”