US handbag maker, Michael Kors, has snapped up luxury shoe brand Jimmy Choo in a deal worth 1 billion euros. (£896m deal)
The British firm, which was put up for sale in April, rose to prominence after being regularly featured in 90s TV hit show, Sex and the City, and are still seen on the feet of the famous, including the Duchess of Cambridge, Beyonce and Kendal Jenner.
Founded by bespoke shoemaker Jimmy Choo in the east end of London in the 1990s, Jimmy Choo Plc listed at 140 pence a share in 2014 and will sell out at 230 pence a share.
Its strong performance stands in contrast to Michael Kors which has lost 65 percent of its market value since 2014 due to fierce competition at the more affordable end of the luxury market and a drop in customers at department stores.
Michael Kors, which has tried to fight back by expanding into dresses and menswear and its online business, said in May that sales at stores established for more than a year fell 14 percent in its fiscal fourth quarter.
The company has pledged to use its own infrastructure to help Jimmy Choo grow further via store openings and online.
Jimmy Choo will also have the opportunity to grow in the men’s luxury footwear category, as well as greater exposure to global markets, “particularly the fast-growing market in Asia”.
The deal is the latest in a string of foreign takeovers of UK companies, as buyers abroad take advantage of a drop in the value of sterling since Britain voted to leave the European Union in June 2016.