Italy's Prada says to buy rival Versace for EUR1.25 billion
Alliance News
2025-04-10 13:31
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(Alliance News) - Italian fashion house Prada announced Thursday that it had reached a deal with US group Capri Holdings to buy Versace for EUR1.25 billion.
The acquisition will create a luxury group with revenues of over EUR6 billion that could better compete with industry titans such as the French conglomerates LVMH Moet Hennessy Louis Vuitton SE and Kering SA amid a slowdown in the sector worldwide.
"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," Prada group chair & executive director Patrizio Bertelli said in a statement.
In 2018, Capri paid EUR1.83 billion to acquire Versace, which was previously owned 80% by the Versace family and 20% by the US investment fund BlackRock Inc.
Amid declining sales, it put the Milan-based label up for sale, and began exclusive negotiations with Prada at the end of February.
Capri, which also owns Jimmy Choo and Michael Kors, had to accept a reduced price from Prada amid the market turmoil caused by US President Donald Trump's tariffs.
The Financial Times had reported that the price was initially expected to be about USD1.6 billion but had been negotiated downwards in recent days.
Last month, Donatella Versace stepped down as creative director after more than 30 years, in what was widely seen as a prelude to the accord.
She took over in 1997 following the murder of her older brother Gianni, who founded the Milan-based label in 1978.
But on April 1 she was replaced as creative director by Dario Vitale, who has overseen soaring sales at Miu Miu, Prada's sister brand targeting a younger clientele.
Donatella Versace, who turns 70 in May, is now the label's chief brand ambassador.
source: AFP
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