Michael Kors agreed to buy Jimmy Choo for about 896 million pounds (US$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, a premium of 18 per cent over Monday’s close, the companies said Tuesday.

The price is equal to about 17.5 times Jimmy Choo’s adjusted Ebitda 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 agreeing to buy Kate Spade & Co. earlier this year.

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Jimmy Choo was acquired by private-equity investors three times before being bought by JAB Holding Co. for more than 500 million pounds in 2011. JAB, the investment vehicle of the billionaire Reimann family, sold a stake in a 2014 initial public offering, though has remained the company’s majority owner with a 68 per cent stake.

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The shares rose as much as 17 per cent in early trading.

BofA Merrill Lynch and Citigroup advised Jimmy Choo. Goldman Sachs and JPMorgan Chase & Co. advised Michael Kors. Michael Kors said it would keep Jimmy Choo’s existing management team, led by Chief Executive Officer Pierre Denis.

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