Michael Kors takes over fashion icon Versace in $2.12 billion deal

MILAN (Reuters) - U.S. fashion group Michael Kors has agreed to buy Versace in a deal valuing the revered designer at $2.12 billion, the companies said in a joint statement on Tuesday, making it the latest Italian brand falling into foreign hands.

As part of the deal, Michael Kors agreed to buy all of Versace's outstanding shares for a total enterprise value of 1.83 billion euros, to be funded in cash, debt and shares in Michael Kors Holding Ltd, which will be renamed Capri Holdings Ltd.

U.S. private equity firm Blackstone, which bought 20 percent of Versace back in 2014, will fully exit its investment.

The Versace family, which currently owns 80 percent of the fashion house via a holding company called Givi, will receive 150 million euros of the purchase price in Capri shares.

The deal is expected to close in the fourth fiscal quarter, subject to regulatory approvals.

($1 = 0.8503 euros)

(Reporting by Agnieszka Flak, editing by Valentina Za)