In a bold move set to reshape the luxury fashion landscape, Italian fashion house Prada has struck a €1.26 billion deal to acquire iconic rival Versace from Capri Holdings.
The acquisition, announced on Thursday (today), includes Versace’s debt and marks a significant discount from the €1.92 billion that Capri – then known as Michael Kors – paid for the brand in 2018.
The deal brings together two of Italy’s most recognisable designer labels under one roof and is viewed as a strategic attempt to strengthen the country’s standing in a global luxury market largely dominated by French conglomerates such as LVMH and Kering.
Versace has struggled in recent quarters, posting operating losses amid a wider slowdown in luxury demand. The deal follows the departure of Donatella Versace as Chief Creative Officer in March, bringing to a close a decades-long chapter for the family behind the legendary fashion house.
Prada, on the other hand, has continued to perform resiliently, defying industry headwinds. The company, which already owns brands such as Miu Miu and Church’s (a luxury footwear company), said the acquisition will position it as a stronger competitor on the global stage.
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