Prada Acquires Versace for 1.25 Billion Euros
MILAN – After months of speculation, Prada finally confirmed it is acquiring 100 percent of Versace from Capri Holdings for 1.25 billion euros.
On Thursday, the day Prada‘s exclusive talks with Capri Holdings were set to end, the Italian luxury company publicly traded in Hong Kong said that the deal is subject to adjustments at closing.
“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,” said Patrizio Bertelli, Prada Group chairman and executive director. “We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships. Our organisation is ready and well positioned to write a new page in Versace’s history, drawing on the Group’s values while continuing to execute with confidence and rigorous focus.”
Up until last week, the company was rumored to be on its way to pay 1.5 billion euros for both Versace and Jimmy Choo.
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In March, Donatella Versace was named chief brand ambassador of the fashion house she has helped grow on her own for the past 28 years, following the death of her brother Gianni.
Effective April 1, the designer was succeeded by Miu Miu alum Dario Vitale, named chief creative officer.
In 2018, Donatella Versace reached a $2.1 billion deal to sell her family’s company to Michael Kors Holdings, which subsequently changed its name to Capri Holdings. Sources said Prada Group was in exclusive due diligence with Capri about buying both Jimmy Choo and Versace. Prada could in turn flip Jimmy Choo to another buyer to focus on Versace. Neither Capri nor Prada has acknowledged the process.
Prada was one of the early bidders on the scene after Capri Holdings tapped Barclays to sell the brands, according to sources who have been following the process. In February, Prada surged to the front of the pack and entered into exclusive talks with Capri .
