5 Pages FINC term paper

a) Support the growth of Jimmy Choo through retail store openings and further development of its online presence (Ishihara & Zhang, 2017).

b) Expand Jimmy Choo’s product offering within its existing categories, in particular handbags and small leather goods; and

c) Leverage the benefits of scale and capability that derive from being part of a larger family of brands.

III. CONDITIONS TO THE ACQUISITION

a) Approval of the Scheme by a majority in number of the Scheme Shareholders present and voting (and entitled to vote), representing not less than 75% in value of the Scheme Shares voted, either in person or by proxy, at the Court Meeting;

b) Approval of the Special Resolution at the General Meeting by the Jimmy Choo Shareholders by the requisite majority at the General Meeting;

c) Sanction of the Scheme by the Court and the registration of the Scheme Court Order with the Registrar of Companies; and

d) Receiving merger control clearance from the relevant antitrust authorities in the European Union and Russia.

IV. ACQISITION

a) Acquisition cost; $896

b) New cost of shares; $2.36 per share

c) Reasons for Acquisition

1) Brand support

2) Worldwide presence; present in 150 countries

3) Growth in sales from $364 million to $1billion

4) Exposure to international markets

d) Sources of funding

1) JPMorgan Chase

2) Goldman Sachs

e) Challenges of acquisition (Sun, 2018).

V. EXPECTED BENEFITS

a) Growth opportunity for Jimmy Choo sales to $1 billion

b) Balanced portfolio with greater product diversification( Kent at el., 2018)

c) An enhanced positioning in the attractive and growing luxury footwear segment

d) Further expansion in the luxury accessories market;

e) greater exposure to global markets,

VI. MICHAEL KORS OPERATION SEGMENTS

a) Retail; approximately 57.2% of total revenue and 827 retail stores across America, Europe and Asia

b) Wholesale: approximately 39.5% of total revenue and approximately 1,604 department stores across America, Europe and Asia

c) Licensing: approximately 3.3% of total revenue and consists primarily of royalties earned on licensed products and geographic licenses.

VII. CONCLUSION

References

Ishihara, M., & Zhang, Q. (2017). Balancing Exclusivity and Accessibility: Patterns of brand and product line extension strategies in the fashion luxury industry. luxury, 4(1), 31-57.

Kent, A. M., Phipps, C., Schwarz, E., & Blasquez Cano, M. (2018). Fashion space and place: convergence of consumer experience.

Sun, O. (2018). Sustainability strategies and challenges in the luxury apparel industry.