US fashion group Michael Kors has agreed to buy Versace in a deal valuing the revered designer at $2.12 billion, the companies said in a joint statement on Tuesday, making it the latest Italian brand falling into foreign hands.

As part of the deal, Michael Kors agreed to buy all of Versace's outstanding shares for a total enterprise value of €1.83 billion , to be funded in cash, debt and shares in Michael Kors Holding Ltd, which will be renamed Capri Holdings Ltd.

US private equity firm Blackstone, which bought 20 per cent of Versace back in 2014, will fully exit its investment.

The Versace family, which currently owns 80 per cent of the fashion house via a holding company called Givi, will receive €150 million of the purchase price in Capri shares.

The deal is expected to close in the fourth fiscal quarter, subject to regulatory approvals.

Donatella Versace.Donatella Versace.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.