Michael Kors buys Jimmy Choo

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Michael Kors have aquired the British footwear label for 1.2 billion dollars.

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Michael Kors is buying Jimmy Choo for 896 million pounds ($1.2 billion), both brands announced on Tuesday. Under the deal, each shareholder of the high-end footwear label will receive 2.30 ($3) pounds per share in cash.

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Princess Diana wearing Jimmy Choo’s heels

The acquisition is a response to the decrease in sales for upscale brands, as mall shopping has declined a lot, reports The New York Times. Though e-commerce sites, fast-fashion brands, and even luxury labels like Gucci continue to thrive, brands in the “accessible luxury market,” such as Kors, are struggling. This deal comes two months after Coach made a similar move by buying Kate Spade for $2.4 billion.

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Jimmy Choo with Kors makes for an interesting pair, since Choo is known for its sky-high stilettos and glam, crystal-embellished designs, while the Kors gravitates towards down-to-earth leather goods and ready-to-wear.

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But Kors thinks they make a good match. The company told WWD that it plans to incorporate the “experiences, infrastructure and capabilities that it has developed over the course of its own global growth as a luxury fashion brand to support the growth of Jimmy Choo through retail store openings and further development of its online presence.”

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Bella Hadid for Michael Kors Fall 2017

Jimmy Choo will continue to function “as it does today” with Pierre Denis as CEO and Sandra Choi as creative director, so won’t have any big changes in the company or its designs. Meanwhile, Kors plans to add an “expanded assortment” of products to its own repertory.

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