Prada Expands Its Luxury Power
Prada announced on Tuesday that it acquired Versace and brought two major Italian fashion houses under one roof. The company paid $1.38bn, much less than the roughly $2bn that Capri Holdings invested in Versace in 2018. The deal expands Prada’s portfolio, which includes Miu Miu, and strengthens its position against rivals such as LVMH, the owner of Dior, Fendi and Louis Vuitton.
Versace Begins a Fresh Phase
Donatella Versace resigned in March after 27 years shaping the house with glamorous designs and the Medusa logo. She took charge in 1997 following the murder of her brother Gianni and guided the brand through major changes. Dario Vitale succeeded her and brought his background from Miu Miu, Prada’s youth-focused luxury label.
The Sale Reflects Sharp Declines
The company is being sold at a loss of about $700m after Versace’s sales weakened. Capri Holdings also saw softer figures at its other brands, including Michael Kors and Jimmy Choo. During Capri’s ownership, Versace moved away from ornate styles and embraced a minimalist direction while increasing prices.
Prada Confirms the Deal’s Completion
Prada said in a brief statement that it completed the Versace acquisition after receiving all required regulatory approvals. Capri Holdings explained that it will use the proceeds to reduce its debt substantially. Chief executive John D. Idol said the repayment will strengthen the firm’s balance sheet.
Prada Outlines Its Long-Term Vision
Prada chief executive Andrea Guerra said earlier this year that Versace holds huge potential. He added that the path ahead demands discipline, careful execution and patience.
