Prada Group has agreed to pay $1.38 billion to acquire fellow Italian luxury brand Versace from fashion conglomerate Capri Holdings.
The transaction will be finalized during the second half of the year, subject to customary closing conditions including regulatory approvals. It will be funded by 1 billion euros of new debt and a half-billion euro debt facility.
Capri, which once aimed to build a stable of luxury brands similar to LVMH and Richemont, will still own the Jimmy Choo and Michael Kors brands.
Prada appears to be creating its own mini-empire. In addition to Versace, the Milan-based company owns the Miu Miu label as well as multiple footwear brands and the Milan pastry shop Marchesi.
“Versace has huge potential,” Prada Group CEO Andrea Guerra said in a statement. “The journey will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus…. Notwithstanding the sector uncertainties, we look at the future with confidence, focused on a long-term strategic vision.”
In 2023, Capri attempted to merge with another U.S. luxury conglomerate, Tapestry, which owns Coach, Kate Spade, and Stuart Weitzman. That merger was eventually blocked by a federal judge.
(Photo courtesy of Capri)