There has been speculation about a takeover for months: Luxury concern Prada is swallowing competitor Versace. From now on, the two big names in Italian fashion will be united under one roof.
Luxury fashion group Prada will buy fashion house Versace from the US holding company Capri. This was announced in Milan by the Prada group, which also owns luxury brands such as Miu Miu and Church's. The purchase price is given as 1.25 billion euros.
With this acquisition, the Prada concern continues its expansion course. To date, Prada has weathered the decline in demand in the luxury goods segment, while Versace has recently been experiencing losses.
Speculation about the earliest purchase
The merger of the two groups strengthens Italy's position in the luxury sector dominated by French companies. "We want to continue the legacy of Versace, promoting and reinterpreting its bold and timeless aesthetic," said Prada boss Patrizio Bertelli. At the same time, with Versace we offer a strong platform, based on many years of investment and long-term relationships.
The price Prada paid for Versace is significantly below the value of about $2.15, including the debts that Capri incurred in 2018. Capri Holdings Limited, then known as Michael Kors, acquired Versace from the family that founded it and financial investor Blackstone.
Speculation about Prada's interest in Versace has been going on since the beginning of the year. According to the newspaper "Corriere della Sera", there have recently been some obstacles. The special customs duties imposed by Donald Trump on other countries - including Italy - have also raised concerns about this merger./ DW (A2 Televizion)
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