Photo: Vittorio Zunino Celotto / Getty Images News / Getty Images
Prada Group has agreed to purchase Versace from Capri Holdings in a deal valued at $1.4 billion. Announced on Thursday (April 10), Prada secured the deal by negotiating the purchase price down from $1.6 billion. The acquisition will be financed through $1.6 billion in new debt, following more than $1 billion already borrowed by Prada. The boards of both companies have approved the transaction, which is expected to close in the second half of the year, pending regulatory approval.
“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.
Donatella Versace, who served as Versace’s chief creative officer for nearly 30 years, stepped down last month, which influenced the negotiations. The luxury brand, founded in 1978 by Gianni Versace, was acquired by Capri Holdings (formerly Michael Kors) for $2.1 billion in 2018. This latest acquisition marks a significant shift in the luxury fashion industry, as Prada expands its influence and market share.
"We aim to continue Versace's legacy, celebrating and re-interpreting its bold and timeless aesthetic," said Prada chairman Patrizio Bertelli.