Prada Completes $1.38 Billion Acquisition of Versace
Prada has completed its acquisition of Versace for approximately $1.38 billion (£1.04 billion). This deal price is roughly $700 million less than Capri Holdings' 2018 purchase price for Versace, which was about $2 billion.
The acquisition expands Prada's luxury portfolio by adding Versace, allowing it to compete more directly with LVMH's brands such as Dior, Fendi, and Louis Vuitton. In March, Donatella Versace stepped down as creative chief after 27 years, and Dario Vitale, formerly a design director at Miu Miu, was appointed as Versace's new creative lead.
Capri Holdings, which also owns Michael Kors and Jimmy Choo, sold Versace at a loss as part of a broader divestment strategy. The proceeds from the sale will be used to repay the majority of Capri's debt. This decision is aimed at strengthening Capri's balance sheet amid slowing sales of Versace.
Andrea Guerra, the CEO of Prada, stated that Versace has huge potential, though integrating the brand will require disciplined execution and patience. Prada confirmed that all required regulatory clearances for the acquisition have been received and the deal is now complete.
