Prada acquires fashion competitor Versace for .4 billion.
Prada has announced a significant acquisition, acquiring the iconic fashion house Versace for approximately .4 billion. This move signifies the unification of two of the most prominent names in Italian luxury fashion, marking a pivotal shift in the industry as announced on Thursday. The acquisition comes on the heels of a series of changes within Versace, particularly following the departure of its long-time creative leader, who stepped down last month after steering the brand for many years.
Prada’s chairman, Patrizio Bertelli, expressed the company’s commitment to preserving and revitalizing Versace’s distinctive aesthetic, emphasizing the intention to forge a new chapter in the fashion house’s storied history. This assertion reflects Prada’s strategic focus on leadership within Italian luxury and its evident readiness to integrate Versace into its operational framework.
Versace has experienced financial struggles under its previous parent company, Capri Holdings, which indicated that the sale was a strategic decision aimed at bolstering its financial standing and enhancing shareholder value. Capri, which acquired Versace for .1 billion in 2018, recognized the need for a significant transformation given the brand’s challenging performance in recent years. Prior to Capri’s ownership, Versace remained under the stewardship of the Versace family, initially led by its founder Gianni Versace, until his tragic death in 1997, followed by his sister Donatella.
Unlike many of its competitors, Prada has demonstrated resilience in the luxury market, reporting an impressive 17% increase in year-over-year revenue for 2024, propelled significantly by the popularity of its Miu Miu brand. The forthcoming acquisition of Versace is set to be financed through 1.5 billion euros in debt and is expected to close in the latter half of 2025, having secured the backing of both Prada and Capri’s boards of directors.
As the luxury fashion market continues to evolve, this acquisition not only reshapes the competitive landscape but also underscores Prada’s assertive approach to consolidating power among the top luxury brands in Italy. The union of these two historic fashion houses could redefine future trends and consumer expectations in the luxury sector.
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