Prada said Thursday that it had reached a deal to buy Versace for 1.25 billion euros ($1.38 billion), building a new Italian fashion powerhouse and hoping to insert much-needed “spark” into its smaller, flashier rival.
The much anticipated acquisition, from US group Capri Holdings, will create a group with revenues of over six billion euros that could better compete with giants such as the French conglomerates LVMH and Gucci owner Kering.
“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftmanship and heritage,” Prada Group chairman Patrizio Bertelli said.
In 2018, Capri paid 1.83 billion euros (then $2.1 billion) to acquire Versace, which was previously owned 80 percent by the Versace family and 20 percent by the US investment fund BlackRock.
But amid declining sales it sought a buyer, opening exclusive negotiations with Prada at the end of February.
Capri, which also owns Jimmy Choo and Michael Kors, had to accept a reduced price from Prada amid the market turmoil caused by US President Donald Trump’s tariffs.
The Financial Times had reported that the price was initially expected to be about $1.6 billion but had been negotiated downwards in recent days.
