Prada Pushes Forward With Bold Expansion
Prada announced on Tuesday that it acquired Versace and brought two major Italian luxury houses together under one roof. The company paid $1.38bn, well below 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 powerful rivals such as LVMH, owner of Dior, Fendi and Louis Vuitton.
Versace Steps Into a New Chapter
Donatella Versace left her role as creative chief in March after 27 years defined by glamorous designs and the famous Medusa logo. She took charge in 1997 after the murder of her brother Gianni and shaped the house for decades. Dario Vitale succeeded her and brought his experience from Miu Miu, Prada’s youth-focused luxury label.
Sale Comes With Heavy Financial Losses
The company is being sold at a loss of about $700m after Versace’s sales slowed. Capri Holdings also reported weaker performance from its other brands, including Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace moved away from its ornate signature looks and leaned into a minimalist trend while raising prices sharply.
Prada Confirms Completion of the Deal
Prada stated in a brief announcement that it completed the Versace acquisition after securing all required regulatory approvals. Capri Holdings said it will use money from the sale to reduce its debt significantly. Chief executive John D. Idol explained that the repayment will strengthen the firm’s balance sheet.
Prada Outlines Its Ambitious Vision
Prada chief executive Andrea Guerra said earlier this year that Versace holds huge potential. He added that the future journey will demand discipline, strategic focus and patience.
