The Prada Group has announced its acquisition of the Italian fashion house Versace from Capri Holdings, a U.S. luxury group, in a deal valued at $1.4 billion.
Prada highlighted that Versace's "highly recognizable aesthetic" would be a "strongly complementary addition" to its existing portfolio, which includes the Prada and Miu Miu brands. The group also noted Versace's "significant untapped growth potential" based in Milan.
The final deal value is subject to adjustments upon closing, which is anticipated in the second half of the year. The acquisition will be financed through billion in new debt and has already received approval from the boards of directors at both Prada and Capri Holdings.
“Versace will maintain its creative DNA and cultural authenticity, while benefitting from the full strength of the Group’s considerable consolidated platform, including industrial capabilities, retail execution and operational expertise,’’ Prada said in a statement.
Versace, founded in 1978 by the late Gianni Versace, has been owned since 2018 by Capri Holdings, which includes Michael Kors and Jimmy Choo.
Capri Holdings paid $2 billion for Versace, but had been struggling in the recent era of “quiet luxury’’ to position the stalwart of Italian fashion with its sexy silhouettes and loud patterns.
Last month, Capri Holdings named Dario Vitale as creative director to replace Donatella Versace, who assumed the role after her brother’s 1997 murder. Vitale came from Miu Miu, the stunningly successful youth-driven brand in the Prada Group.
Versace was given the new role of chief brand ambassador in the shakeup, which was widely viewed as setting the scene for the long-rumored Prada sale. Miuccia Prada acknowledged the group’s interest on the sidelines of Milan Fashion Week in February.
