The Prada Group has announced its acquisition of Italy’s Versace from Capri Holdings for 1.25 billion euros ($1.4 billion).
Prada stated that Versace’s recognizable aesthetic complements its existing portfolio, which includes the Prada and Miu Miu brands, and offers significant growth potential.
The final value of the deal will be adjusted at closing, anticipated in the second half of the year.
Prada plans to finance the acquisition with 1.5 billion euros in new debt, and the transaction has received approval from the boards of both Prada and Capri Holdings.
“Versace will maintain its creative DNA and cultural authenticity, while benefitting from the full strength of the Group’s considerable consolidated platform, including industrial capabilities, retail execution and operational expertise,’’ Prada said in a statement.
Versace, founded in 1978 by the late Gianni Versace, has been owned by Capri Holdings since 2018, which also includes Michael Kors and Jimmy Choo.
Capri Holdings acquired Versace for $2 billion but struggled to align the brand’s bold, sexy designs with the current trend of “quiet luxury.”
Last month, Capri Holdings appointed Dario Vitale as creative director, replacing Donatella Versace, who had held the role since her brother’s 1997 murder.
Vitale, formerly with Miu Miu in the Prada Group, is known for his success with the youth-driven brand.
Donatella was given the new role of chief brand ambassador in the reshuffle, which many saw as a precursor to the anticipated Prada sale.
Miuccia Prada confirmed the group’s interest during Milan Fashion Week in February.
