Italian luxurious model Prada on Thursday confirmed its acquisition of Versace from the U.S.-based Capri Holdings in a money deal value round $1.4 billion.
This marks the largest acquisition in Prada’s 112-year historical past and brings Versace again underneath Italian possession. (Pic used for illustration)(AFP)
“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftmanship and heritage,” stated Prada Group chairman and government director Patrizio Bertelli in an announcement.
Because of financial uncertainty and commerce tensions underneath US President Donald Trump’s administration, together with imposed tariffs, Capri needed to accept a lower cost than it initially paid.
Transaction to shut within the second half of this yr
The Milan-based luxurious model Prada, led by billionaire designer Miuccia Prada and her husband Patrizio Bertelli, introduced that its acquisition of Versace is anticipated to be finalised within the second half of this yr. Bloomberg had earlier reported on March 2 that Prada was near sealing the cope with Capri Holdings Ltd., which had acquired Versace in 2018 for $1.8 billion.
This marks the largest acquisition in Prada’s 112-year historical past and brings Versace again underneath Italian possession. The transfer is anticipated to strengthen Prada’s place within the international luxurious market, serving to it higher compete with main gamers like LVMH and Kering. It additionally gives Versace a brand new path for revival, one thing Capri struggled to realize.
The deal went by regardless of ongoing international market instability pushed by tariff tensions initiated underneath Donald Trump. Prada had been in months-long negotiations to amass the long-lasting model, identified for its daring, ready-to-wear collections created by founder Gianni Versace within the Seventies.
In what many noticed as a lead-up to the acquisition, Donatella Versace stepped down as inventive director final month after over three many years within the position. She had taken the helm in 1997 following the tragic homicide of her brother Gianni, who based the style home in 1978.
As of April 1, she was succeeded by Dario Vitale, credited with driving sturdy gross sales at Prada’s youth-focused sister label, Miu Miu. Donatella, who turns 70 in Could, now serves because the model’s chief ambassador.
(With AFP, Bloomberg inputs)