Michael Kors to buy Jimmy Choo for $1.2 billion

U.S. retailer Michael Kors has agreed to buy luxury shoemaker Jimmy Choo  for $1.2 billion, snapping up a British brand launched in the east end of London by Tamara Mellon and made famous by many celebrities.

It put itself up for sale in April after its majority owner JAB signaled its intention to focus on consumer goods. At 230 pence in cash per share, the group is receiving a premium of 36.5 percent to its share price before the sale process was announced.

Michael Kors, once the hottest name in affordable luxury with a hugely popular handbag range, has been struggling in recent quarters with declining same-store sales as fewer people visit its shops.

“Jimmy Choo is an iconic premier luxury brand that offers distinctive footwear, handbags and other accessories,” said Michael Kors, honorary chairman and chief creative officer.

Jimmy Choo floated on the London Stock Exchange at 140 pence in 2014. It closed on Monday at 195 pence.

Jimmy Choo