As confirmed by BBC News, Michael Kors has agreed to buy the retailer, Jimmy Choo, for a $1.2 billion deal. A premium of 36.5 percent of the market price of the share before the sale announced was agreed to be paid by Michael Kors. Under the terms of the contract, Michael Kors will pay 230 pence for every share. Chairman and chief creative officer Michael Kors said that the offer of £896 million (approximately $1.2 billion) was "final and will not be increased," unless there is another offer from a third party.

Major stockholder of Jimmy Choo decided to move out from the luxury fashion industry

Jimmy Choo, which rose from humble origins in a Hackney cobblers workshop to become one of Britain’s best-known fashion brands put itself up for sale next year April. The plan of selling the firm was backed by its major shareholder, JAB Holdings, which is owned by the billionaire Reimann family.

The sale plan was initiated by JC's principal shareholder, JAB Holdings, owned by the German billionaire Reimann family. JAB holdings own the 70 percent of the net assets of the company. According to sources, the Reinmann family wants to sell its shares because they want to change their business industry from luxury fashion market towards coffee and food businesses.

Upmarket fashion brands struggling for years

Because of the shift in consumer preferences and steep discounting in department stores, upmarket fashion brands' sales are affected. For the recent years, high-end brands like Prada, Gucci, and Chanel are struggling. Sales growth of Jimmy Choo went down 0.80 percent in 2016, which the company said because of the slow down of the reflected-luxury sector.

The announced plan of Michael Kors to buy out the shoe retailer came two months after Coach announced to buy Kate Spade in $2.4 billion deal. Jimmy Choo is known worldwide for its glamorous and fashion-forward footwear,” said John Idol, chairman and chief executive officer of Michael Kors.

John Idol also said that there is a potential that Jimmy Choo will have a significant growth in the future.

"Jimmy Choo is known all over the world for its fashion forward and glamorous footwear. Its outstanding designs and innovative craftsmanship resonate with trendsetters globally," Idol said.

According to a report, Michael Kors will not replace the management of the acquired company after the deal closed, with Pierre Denis staying on as the chief executive.

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