In a historical step for Italian fashionPrada has announced the acquisition of rival rival Versace From Capri holdings Price of $ 1.375 billion in a deal. Strategic acquisition not only unites the two most influential fashion houses in Italy, but also strengthens the situation in the country in a global. Luxury market Prolonged domination by French veterans like LVMH and KERing.
Prada, which has managed to abuse the recession recently in luxury demand, is to increase its operation. On the other hand, Versace is financially struggling, working in a loss in recent quarters. The acquisition expects the brand to give a fresh runway for revival under the leadership of one of the most established fashion groups in Italy.
Prada President Patrijio Burteli said, “We aim to continue the legacy of Versace by celebrating our bold and timeless aesthetics.” “At the same time, we will provide it a strong platform, which are reinforced for years of ongoing investments and lies in long -term relations.”
The Agreed Price is much lower than $ 2.15 billion (including debt), which was paid by Capri Holdings when he acquired Versacea from the Versace family and Blackstone in 2018. The deal, including Versace’s debt, reflects the brand’s recent performance challenges among the global luxury recession.
The acquisition of Prada creates a powerful multi-brand luxury group, which gives it a position to better compete with French groups and expand its impact in high fashion. The talks between Capri and Prada allegedly began in February, the high-day industry change ended.
Praada CEO Andrea Guerra commented, “Versace has great potential. The journey ahead will be long and will require disciplined execution and patience.”
Capri Holdings, who also owns Jimmy Chu and Michael Course, are now ready to streamline their portfolio after sales from Versace.
The transition comes immediately after a major leadership shift in Versace. In March, Donatela Versace stepped down from the role of his creative director after nearly three decades, taking a new title as the main brand ambassador. Former design and image director Dario Vitley in MIU MIU, now take the brand as its chief creative officer.
As Versace started this new chapter under Prada’s umbrella, the fashion world is looking to see how this Italian coalition changes the luxury landscape.
