Prada Group Acquires Versace in Major Fashion Deal Valued at $1.4 Billion
In a significant move within the luxury fashion sector, the Prada Group confirmed on Thursday its plans to acquire the Italian fashion house Versace from Capri Holdings. The transaction is valued at approximately 1.25 billion euros ($1.4 billion), marking a noteworthy shift in ownership for the iconic brand.
Strategic Acquisition to Enhance Prada’s Portfolio
According to Prada, the addition of Versace enhances its already esteemed collection, which includes the renowned Prada and Miu Miu brands. The group emphasized that Versace’s distinctive and recognizable aesthetic provides “significant untapped growth potential,” aligning well with Prada’s overall strategic vision.
Financial Aspects of the Deal
The final value of the acquisition is subject to adjustments upon the deal’s closing, which is anticipated to occur in the latter half of the year. Prada plans to finance the purchase through the issuance of 1.5 billion euros in new debt. The boards of both Prada and Capri Holdings have approved the transaction.
Maintaining Versace’s Creative Legacy
In an official statement, Prada reassured stakeholders that Versace would retain its “creative DNA and cultural authenticity.” The brand is expected to benefit from Prada’s extensive operational expertise, industrial capabilities, and retail execution resources.
A Look Back at Versace’s Recent History
Founded by acclaimed designer Gianni Versace in 1978, the brand has been operated by Capri Holdings since 2018, the parent company also overseeing Michael Kors and Jimmy Choo. Capri Holdings purchased Versace for $2 billion, but has faced challenges in effectively positioning the brand amid the rising trend of “quiet luxury,” which contrasts sharply with Versace’s bold and provocative designs.
Shifts in Leadership
In an apparent preparation for the transition, Capri Holdings announced last month that Dario Vitale had been appointed as the new creative director of Versace, taking over from Donatella Versace, who had led the brand since her brother’s tragic passing in 1997. Donatella is set to assume the role of chief brand ambassador, a move interpreted as a precursor to the anticipated sale to Prada.
Conclusion and Future Expectations
With this acquisition, Prada positions itself for expanded influence in the luxury fashion market. As the merger is completed, industry experts will closely observe how Prada integrates Versace into its existing portfolio while preserving the brand’s celebrated identity.