Michael Kors to buy luxury shoemaker Jimmy Choo

LONDON: Michael Kors has agreed to take over luxury retailer Jimmy Choo for 896 million pounds ($1.17 billion), it said on Tuesday.

Jimmy Choo, famous for its stiletto shoes and accessories, put itself up for sale in April as majority investor JAB increased its focus on consumer goods.

Under the terms of the deal Michael Kors will pay 230 pence in cash for each Jimmy Choo share - a premium of 36.5 percent to its share price before the sale process was announced.

Michael Kors, once the hottest name in affordable luxury, has been struggling in recent quarters with declining same-store sales as fewer people visit its shops. It has been expanding into dresses and menswear and investing in its online business.