US fashion label Michael Kors has agreed to pay £896m to acquire upmarket British footwear firm Jimmy Choo, bringing to an end a three-month sales process.
The all-cash offer equates to 230p per share in the designer footwear company. Its stock has risen 17 per cent in response, to £2.28 per share.
"Michael Kors said its offer was 'final and will not be increased', unless there is another offer from a third party," says the Financial Times.
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Kors told the BBC: "We admire the glamorous style and trendsetting nature of Jimmy Choo designs.
"We look forward to welcoming Jimmy Choo to our luxury group."
Jimmy Choo put itself up for sale in April, amid a slowdown in the luxury sector caused by "steep discounting in department stores and shift in consumer preference away from large, conspicuous labels".
Sales fell 0.8 per cent last year and its profit dropped from £19.4m to £15.4m.
John Idol, chairman and chief executive officer of Michael Kors, said they considered the label to be "poised for meaningful growth in the future".
He added: "We are committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years."
Jimmy Choo was founded in 1996 by former Vogue accessories editor Tamara Mellon and Malaysian designer Jimmy Choo.
Mellon bought the business out along with the first of a series of three private equity owners in 2001, before eventually leaving in 2011 to found her own fashion label.
Jimmy Choo was listed on the London Stock Exchange by its by-now majority shareholder JAB Holding, which is owned by the billionaire German Reimann family. The Duchess of Cambridge, Beyonce and actress Emma Stone are all said to be regular buyers of the brand's designs.
JAB is moving out of fashion to concentrate on its coffee and food businesses, including Krispy Kreme.
Jimmy Choo puts itself up for sale
24 April
Premium footwear brand Jimmy Choo has put itself up for sale.
The company's board has launched a strategic review of the business, which the BBC says "has seen sales slow in recent years".
Jimmy Choo's main shareholder JAB Holdings, which owns about 70 per cent of the company and is also an investor in Krispy Kreme donuts and luxury firm Coty, said it is supportive of the process.
No bids have yet been received and "other options for the business" are also being considered.
JAB said there was "no certainty that a sale of all or any of [JAB's] shareholding in Jimmy Choo will take place, nor as to the terms on which any such transaction may take place".
"Last month Jimmy Choo said sales rose 1.6 per cent in 2016 once currency effects were excluded, with growth in China being offset by difficult trading in the US and Europe," says Financial Times.
"Including the effects of the strong pound, sales were £364m, a 15 per cent rise."
The BBC says that headline sales growth after currency adjustments was seven per cent in 2015 and 12 per cent in 2014.
Jimmy Choo was listed in 2014 and its shares had gained 20 per cent this year. The share price was up 8.5 per cent this morning, to 183p.
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