match:
Italian fashion house Prada on Thursday announced that he had reached a deal with Capri Holdings to buy his attractive rival Versace for 1.25 billion euros ($ 1.38 billion).
The acquisition will create a luxury group with revenue of over six billion euros that could better compete with the industry veterans such as the French group LVMH and Gucci’s owner Kairing, which was between the recession in the region worldwide.
“We are happy to welcome Versac and create a new chapter for a brand, with which we share a strong commitment to creativity, craftsmanship and heritage,” said in a statement, “We share a strong commitment to creativity, craftsmanship, and heritage,” the President of Prada Group said in a statement, “We shares a strong commitment to creativity, craftsmanship, and heritage,” said in a statement and a brand for a brand.
In 2018, Capri paid 1.83 billion euros (then $ 2.1 billion) to acquire Versace, which was earlier owned by 80 percent by the Versacea family and 20 percent by US Investment Fund Blackrock.
Amidst the decline in sales on the match-based label, it placed Versace for sale, and began a special conversation with Prada in late February.
Capri, who owns Jimmy Chu and Michael course, was to accept a lower price than the market between the upheaval of the market due to the tariff of US President Donald Trump.
The Financial Times reported that the price was expected to be around $ 1.6 billion initially, but in recent times, negotiations were held.
Last month, Donatela Versace stepped as a creative director after more than 30 years, a step was widely seen as a preamble for the account.
He took over after the murder of his elder brother Gianni in 1997, who founded the label in 1978.
But on 1 April, he was replaced as a creative director by Dario Vitale, who looked after selling in Miu Miu, who is targeting Prada’s sister Brand a small customer.
Donatela Versace, who turned 70 in May, is now the main brand ambassador of the label.
Long journey
While there is still a label attached to the jet set, some glow of Versace has reduced in recent years.
It posted $ 193 million below 15 percent in revenue in its financial 2025 third quarter.
In contrast, Prada, under the creative hull of Miucccia Prada, is in the 76 -year -old granddaughter of the group, Mario’s founder, in strong health.
Despite the global recession in the sales of luxury goods, the net profit of Prada increased by 25 percent to 839 million euros in 2024, with revenue 15 percent to 5.4 billion euros.
Andrea Guerra, the Chief Executive Officer of the group of Prada said on Thursday that Versace had a “big ability”, but warned that the work was to be done.
“The journey will be long and required disciplined execution and patience. The development of a brand always requires time and constant attention,” he said.
The deal funded through a new loan of 1.5 billion euros is expected to be closed in the second half of 2025.
‘Complementary joint’
The two fashion labels have different styles in different styles, which opposite the sophisticated subclavism of Prada with the extreme excitement of Versace.
Prada stated that its new acquisition is “a strong complementary addition to its portfolio”.
It said that Versace would “maintain its creative DNA and cultural authenticity”, while Prada would benefit from “industrial abilities, retail performance and operational expertise”.
The deal enhances recent years of trend, with large names seen in Italian fashion such as Gucci, Fundi, and Botga Venetta under the control of their French competitors.
“Prada will be able to bring back light in a brand that was dying and infecting it with new life,” a design advisor Antonio Bondini Conty told AFP.
However, a previous attempt to expand the Prada Portfolio – including luxury footwear brands car shoe and church – provides the story of a precaution.
In 1999, the family group acquired the German brand Jill Sander and Austrian label Helmut Lang before selling them in 2006 as they were reducing its financial results.
In 2000, Prada jointly acquired a 51 percent stake in the Roman label FENDi with LVMH, but a year later the French luxury veteran sold his 25.5 percent stake.
“With the Versacea acquisition,” I see the risk of being distracted by my main business for Prada, “an analyst Luka Solka, an analyst at Bernstein. ,
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