Michael Kors Holdings Limited will be renamed Capri Holdings Limited. The name nods to the island of Capri, a glamorous locale that is often referenced in fashion and design circles.

The deal is valued at €1.83 billion.

“The acquisition of Versace is an important milestone for our group,” says John D. Idol, chairman and chief executive officer, Michael Kors Holdings Limited. “Versace was founded in 1978. For over 40 years, Versace has represented the epitome of Italian fashion luxury, a testament to the brand’s timeless heritage. We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth. With the full resources of our group, we believe that Versace will grow to over $2.0 billion in revenues. We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”

Michael Kors Holding Limited has outlined a strategic plan for Versace's growth that includes, in part:

Through the acquisition, MKHL will expand its global luxury group, diversify its geographic portfolio and have the opportunity to create long-term operational strategies and more.

“This is a very exciting moment for Versace,” says Donatella Versace, vice president and chief designer, Versace. “It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra. I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves. Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential. We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader. We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow.”

MKHL will become Capri Holdings Limited upon the deal’s closing. The transaction is expected to close during the company’s fourth quarter.