Prada has struck a deal to buy smaller rival Versace from Capri Holdings in a move to unite two of the biggest names in Italian fashion. The deal has an enterprise value of $1.375 billion, Prada said on Thursday.
Prada is seeking to expand, having defied a slowdown in luxury demand, while Versace has been operating at a loss. The merger strengthens Italy’s hand in a luxury industry led by French conglomerates.
“We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic,” said Prada Chairman Patrizio Bertelli.
“At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships,” he added.
The price Prada has agreed to pay for Versace is a big discount to the roughly $2.15 billion including debt that Capri paid for Versace in 2018. Previously known as Michael Kors, Capri bought Versace from the Versace family and Blackstone.
About Prada
Prada is a quintessential Italian luxury fashion house, renowned for its understated yet sophisticated designs. Founded in 1913 by Mario and Martino Prada, the brand has evolved from a humble leather goods store to a global fashion powerhouse. Prada’s designs are characterized by clean lines, subtle elegance, and a focus on high-quality materials.
The brand’s iconic nylon backpacks, luxurious handbags, and sleek shoes have become staples in the fashion world. Prada’s influence extends beyond fashion, with its designs often incorporating elements of art, architecture, and culture. The brand’s runway shows are highly anticipated events, showcasing innovative and often provocative designs that challenge traditional notions of beauty and style. Under the creative direction of Miuccia
Versace
Versace is a legendary Italian fashion brand, celebrated for its bold, glamorous, and unapologetically opulent designs.
Founded in 1978 by Gianni Versace, the brand quickly gained international recognition for its daring and provocative style. Versace’s designs are characterized by intricate patterns, vibrant colors, and a blend of classic and contemporary elements.
The brand’s iconic Medusa logo has become synonymous with luxury and sophistication. Versace’s influence extends beyond fashion, with its designs often drawing inspiration from art, history, and culture.
The brand’s runway shows are spectacular events, featuring elaborate costumes, elaborate sets, and A-list celebrities. Under the creative direction of Donatella Versace, the brand continues to embody the spirit of Italian glamour, blending bold style with unapologetic excess. Versace’s commitment to creativity, innovation, and unbridled luxury has solidified its position as a leader in the fashion world.
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