Prada Buys Versace in $1.375B Deal
Prada has secured a deal to purchase Versace for $1.375 billion, combining two of Italy’s most iconic fashion labels. The purchase, which includes Versace’s debt, follows a period of financial struggles for the luxury brand, which has been operating at a loss amid a global slowdown in demand for high-end fashion. In contrast, Prada has managed to maintain strong performance despite these challenges, positioning the acquisition as part of its expansion strategy.
Patrizio Bertelli, Prada's chairman, expressed the company’s commitment to honoring Versace's bold aesthetic, saying, "We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic." He added that Prada would provide Versace with a “strong platform,” helping the brand achieve its full potential. Andrea Guerra, Prada’s CEO, also emphasized the long-term vision for the brand, calling the journey "long" but full of promise.
This acquisition is a significant step in Prada’s strategy to build a more robust presence in the competitive luxury sector, dominated by French giants like LVMH and Kering. With the deal priced well below the $2.15 billion Capri Holdings spent in 2018, Prada's purchase also offers the potential for further growth as it looks to attract new customers through Versace’s distinctive, baroque-style prints.
