The Prada group announced on Thursday an agreement to buy Italian Versace from the American luxury group Capri Holdings in terms of terms which appreciate the fashion house at 1.25 billion euros ($ 1.4 billion).
Prada said that adding “the very recognizable aesthetics of Versace … constitutes a highly complementary addition” to its wallet, which includes Prada and Miu Miu fashion brands. He said Versace, based in Milan, offered “significant unexploited growth potential”.
The final value of the agreement will be adjusted to the fence, expected in the second half. It will be funded by 1.5 billion euros in new debts and has been approved by the Prada and Capri Holdings board.
“Versace will maintain its creative DNA and its cultural authenticity, while benefiting from the full force of the group’s considerable consolidated platform, including industrial capacities, retail and operational expertise,” Prada said in a statement.
Versace, founded in 1978 by the late Gianni Versace, has been detained since 2018 by Capri Holdings, who includes Michael Kors and Jimmy Choo.
Capri Holdings paid $ 2 billion for Versace, but had struggled with the recent “silent luxury” era to position the faithful of Italian fashion with its sexy silhouettes and noisy patterns.
Last month, Capri Holdings appointed Dario Vitale as a creative director to replace Donatella Versace, who assumed the role after the murder of her brother in 1997. Vitale came from Miu Miu, the incredibly successful brand of young people in the Prada group.
Versace received the new role of the brand’s chief ambassador in the reshuffle, which was largely considered to prepare the land for the sale of Prada in the long term. Miuccia Prada recognized the group’s interest on the sidelines of Milan Fashion Week in February.
