Luxury shoemaker Jimmy Choo plc (LON:CHOO) shares surged as it agreed to be taken over by US retailer Michael Kors for US$1.2bn (£896m).
Jimmy Choo, made famous by celebrity fans including Princess Diana and singer Beyonce, put itself up for sale in April after majority owner JAB signalled its intention to focus on consumer goods.
READ: Jimmy Choo steps in the right direction with strong trading in the year to date
Michael Kors, best known for its affordable luxury handbags, has been expanding into dresses and menswear in an effort to address declining same-store sales in recent quarters.
Likewise, Jimmy Choo has seen sales slow in recent years.
Jimmy Choo will become a wholly-owned subsidiary of Michael Kors but will continue to operate as it does today under its existing management team.
“Jimmy Choo is an iconic premier luxury brand that offers distinctive footwear, handbags and other accessories," said Michael Kors, honorary chairman and chief creative officer.
"We admire the glamorous style and trend-setting nature of Jimmy Choo designs."
Jimmy Choo began trading on the London Stock Exchange in 2014 at 140p per share.
Shares jumped16.90% to 228p in morning trading.
The company was co-founded in east London by Malaysian shoemaker Jimmy Choo and former Vogue journalist Tamara Mellon in 1996.