The Prada Group announced on Thursday that it has agreed to pay €1.25 billion (₱80.3 billion) to acquire Versace, the Italian fashion brand, from U.S. luxury group Capri Holdings.
In addition to the Prada and Miu Miu fashion brands, Prada said that Versace’s “highly recognizable aesthetic … constitutes a strongly complementary addition” to its portfolio. Versace, situated in Milan, was believed to have “significant untapped growth potential.”
When the deal closes, which is anticipated to happen in the second half of the year, the ultimate value will be modified. The Prada and Capri Holdings board of directors has approved it, and it will be financed by 1.5 billion euros (96.4 billion pesos) in new debt.
“Versace will maintain its creative DNA and cultural authenticity, while benefiting from the full strength of the Group’s considerable consolidated platform, including industrial capabilities, retail execution and operational expertise,” Prada said in a statement.
The group was “ready and well positioned to write a new page in Versace’s history,” according to Patrizio Bertelli, executive director and group chair of Prada.
Both companies “share a strong commitment to creativity, craftsmanship, and heritage,” Bertelli continued.
Founded in 1978 by the late Gianni Versace, the brand has been owned by Capri Holdings, which also includes Jimmy Choo and Michael Kors, since 2018.
Dario Vitale, who comes from Miu Miu, the wildly successful youth-driven brand in the Prada Group, was appointed creative director by Capri Holdings last month to succeed Donatella Versace, who took up the position following her brother’s death in 1997.
Versace was appointed chief brand ambassador as part of the shakeup, which many saw as paving the way for the long-rumored Prada sale. The group’s interest was confirmed by Miuccia Prada during the Milan Fashion Week in February.
This is not Prada’s first attempt to expand its portfolio. It added Alaia to its lineup in 2000 after acquiring Jil Sander and Helmut Lang in 1999. However, it parted ways from these three brands by 2007 following a string of disagreements and financial difficulties.
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