Prada to buy Versace in a deal valued at $1.4 billion
The Prada Group has made a significant move in the fashion industry by announcing its acquisition of Italian luxury brand Versace from Capri Holdings for a staggering 1.25 billion euros ($1.4 billion). This deal marks a strategic expansion of Prada’s portfolio, which already includes renowned brands like Prada and Miu Miu.
Prada emphasized that Versace’s distinct aesthetic will complement its existing offerings and bring substantial growth opportunities. The acquisition is expected to be finalized in the second half of the year and will be financed through 1.5 billion euros in new debt. Both Prada and Capri Holdings’ boards have approved the transaction.
In a statement, Prada assured that Versace will retain its creative identity and cultural heritage while benefiting from Prada Group’s operational expertise and resources. Established in 1978 by the late Gianni Versace, the brand has been under the ownership of Capri Holdings since 2018, alongside Michael Kors and Jimmy Choo.
Capri Holdings had previously paid $2 billion for Versace but struggled to position the brand in the evolving landscape of luxury fashion. The appointment of Dario Vitale as creative director, replacing Donatella Versace, signaled a new direction for the brand. Donatella Versace transitioned to the role of chief brand ambassador, paving the way for Prada’s eventual acquisition.
The fashion industry has been abuzz with speculation about a potential Prada-Versace deal, with rumors circulating since Miuccia Prada hinted at the group’s interest during Milan Fashion Week in February. The acquisition is seen as a strategic move to strengthen Prada’s market presence and further solidify its position as a powerhouse in the luxury fashion sector.
As the fashion world eagerly awaits the completion of the Prada-Versace deal, industry insiders are anticipating how this acquisition will reshape the dynamics of the luxury fashion landscape. With Versace’s iconic designs and Prada’s operational prowess, the collaboration is poised to create a formidable force in the industry. Stay tuned for more updates on this exciting development in the world of high fashion.
