Prada agrees to buy rival fashion house Versace in a deal valued at $1.4 billion
The Prada Group announced a deal Thursday to buy Italy’s Versace from the U.S. luxury group Capri Holdings under terms that value the fashion house at 1.25 billion euros ($1.4 billion).
The Prada Group announced a deal Thursday to buy Italy’s Versace from the U.S. luxury group Capri Holdings under terms that value the fashion house at 1.25 billion euros ($1.4 billion).
Prada said the addition of Versace’s “highly recognizable aesthetic … constitutes a strongly complementary addition” to its portfolio, which includes the Prada and Miu Miu fashion brands. It said Milan-based Versace offered “significant untapped growth potential.’’
The final value of the deal will be adjusted at closing, which is expected in the second half of the year. It will be funded by 1.5 billion euros in new debt and has been approved by the Prada and Capri Holdings board of directors.
“Versace will maintain its creative DNA and cultural authenticity, while benefitting from the full strength of the Group’s considerable consolidated platform, including industrial capabilities, retail execution and operational expertise,’’ Prada said in a statement.
Versace, founded in 1978 by the late Gianni Versace, has been owned since 2018 by Capri Holdings, which includes Michael Kors and Jimmy Choo.
Rating: 5