Prada has snapped up rival luxury label Versace in a Euros1.25 billion (£1. 1 billion) takeover deal.
The elite fashion house acquired Versace from US based fashion conglomerate Capri Holding in a “Made in Italy” deal that looked destined to become a victim of this month’s financial market chaos.
However the price is said to be well below the $1.6 billion originally mooted, according to industry sources.
The on-off tariff wars initiated by US President Donald Trump have hugely complicated final negotiations in the recent weeks and threatened to scupper the entire deal.
It comes just weeks after creative director Donatella Versace announced she is stepping down after 30 years.
Capri, which also owns Jimmy Choo and Michael Kors, bought Versace for $2.1 billion in 2018.
The Italian label, known for its brash, eye catching, blingy designs was founded in 1968 and was previously family-owned.
However, its sales have been falling in the current financial year as the global slowdown in the luxury sector has hit demand.
However, Prada, which has a more understated classic style, reported a 15% jump in annual net sales worth to €5.4 billion in March with sales of its Miu Miu brand up by 93%.
Prada also owns Luna Rossa, the America’s Cup sailing team, pastry brand Marchesi as as well as traditional English shoe maker Church’s.
Patrizio Bertelli, Prada group chairman and executive director said: “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.
“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 organization 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.”
Prada plans to fund the acquisition with debt, borrowing more than one billion euros. The deal is expected to complete in the second half of the year.
