9 months ago
Prada Acquires Versace for $1.38 Billion
Prada has bought Versace for $1.38 billion.
This is a big deal in the fashion world because it brings together two famous Italian brands.
Versace was previously owned by Capri Holdings, which bought it for $2 billion in 2018.
However, Versace didn't do as well as expected under Capri, so they sold it at a loss.
Prada now wants to make Versace successful again.
Donatella Versace, who was the creative chief for 27 years, recently stepped down.
The new leader, Dario Vitale, comes from Prada's Miu Miu.
Prada hopes to use Versace to compete with other big fashion groups like LVMH, which owns brands like Louis Vuitton and Dior.
Prada has acquired Versace for $1.38 billion, a significant consolidation in luxury fashion.
The acquisition price is below the $2 billion Capri Holdings paid for Versace in 2018, indicating a loss of $700 million.
Prada aims to strengthen its luxury portfolio, which already includes Miu Miu, to compete with global groups like LVMH.
Donatella Versace stepped down as creative chief in March 2024 after 27 years, and Dario Vitale, from Prada’s Miu Miu, is her successor.
Capri Holdings plans to use the proceeds from the sale to reduce its debt.
- Who
- Prada and Versace
- What
- Prada's acquisition of Versace
- Where
- Italy (both brands are Italian)
- When
- Completion date not specified, but regulatory approvals received
- Why
- To strengthen Prada's luxury portfolio and compete with global groups like LVMH
Key facts
- Acquisition Value
- Previous Owner
- Capri Holdings
- Previous Acquisition Price
- Current Prada Portfolio
- Includes Miu Miu
- Versace's Creative Chief
- Donatella Versace (stepped down in March 2024)
- Versace's Successor
- Dario Vitale (from Prada’s Miu Miu)
- Capri Holdings' Other Brands
- Michael Kors, Jimmy Choo
- Capri Holdings' Loss
Quotes
John D Idol
Capri Holdings chief executive
“We plan to use the proceeds to repay the majority of our debt, which will substantially strengthen our balance sheet.”
businesstoday.in
Andrea Guerra
Prada chief executive
“The brand has huge potential but the journey will be long and will require disciplined execution and patience.”
businesstoday.in
Sources
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