Michael Kors to acquire Jimmy Choo

Michael Kors Holdings Ltd agreed to buy Jimmy Choo Plc. for about $1.2 Billion, clinching the London based maker of strappy stilettos, handbags and perfume.

The handbag maker will pay 230 pence a share for the luxury shoemaker. The price is equal to about 17.5 times Jimmy Choo’s adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) for 2016. The Jimmy Choo brand rose to prominence in the late 1990s, boosted by high-profile devotees including the late Princess Diana and the fictional Carrie Bradshaw in television series “Sex and the City.”

The deal comes amid consolidation in the luxury industry, with Michael Kors rival Coach Inc. agreeing to buy Kate Spade & Co. in early 2017. Jimmy Choo was acquired by private-equity investors three times before being bought by JAB Holding Co. for more than £500 million in 2011.

Jimmy Choo was started in 1996 by British Vogue editor Tamara Mellon and designer Jimmy Choo. Its stilettos, which often cost north of $1,000, quickly became a favorite among celebrities like Sarah Jessica Parker and Princess Diana. Jimmy Choo has more than 150 stores around the world.