The Prada Group has officially acquired Versace from the U.S. luxury group Capri Holdings.
The deal was announced on Thursday under terms that value the fashion house at $1.4 billion (€1.25 billion).
“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship, and heritage,” said Patrizio Bertelli, Prada Group chairman and executive director.
“We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”
Prada said the addition of Versace’s “highly recognizable aesthetic … constitutes a strongly complementary addition” to its portfolio, which includes the Prada and Miu Miu fashion brands. It said Milan-based Versace offered “significant untapped growth potential.’’
The final value of the deal will be adjusted at closing, which is expected to come in the second half of the year. €1.5 billion in new debt will fund it and has been approved by the Prada and Capri Holdings board of directors.
“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 continued in a statement.
Versace, founded in 1978 by the late Gianni Versace, has been owned since 2018 by Capri Holdings, which also owns Michael Kors and Jimmy Choo.
Capri Holdings paid $2 billion for Versace but had been struggling in the recent era of “quiet luxury” to position the stalwart of Italian fashion with its sexy silhouettes and loud patterns.
Last month, Capri Holdings named Dario Vitale as creative director to replace Donatella Versace, who assumed the role after her brother’s 1997 murder. Vitale came from Miu Miu, the stunningly successful youth-driven brand in the Prada Group.
Donatella was given the new role of chief brand ambassador in the shakeup, which was widely viewed as setting the scene for the long-rumored Prada sale. Miuccia Prada acknowledged the group’s interest on the sidelines of Milan Fashion Week in February.
John D. Idol, Capri Holdings’ chairman and chief executive officer, said the sale of Versace reflects the company’s “commitment to increase shareholder value, strengthen our balance sheet, and power the future growth of Michael Kors and Jimmy Choo.”
He added: “We will continue to execute on the strategic initiatives shared at our recent Investor Day and remain confident in the long-term growth potential of Michael Kors and Jimmy Choo.”
Additional reporting by The Associated Press
Source: independent.co.uk
