Prada has announced the signing of a final agreement to acquire all of Versace to the Capri Holdings group. In this way, the luxury brand is made with one of its rivals in the sector and will give rise to a giant that expands the Italian footprint in a category dominated by the great French companies.
As the company has pointed out in a statement, the purchase is made by an amount of 1,250 million euros, Figure subject to adjustments to the closure of the operation. The amount is considerably less than the 1,830 million euros that Michael Kors – now he paid for the company when he acquired it in 2018.
The movement places Versace again in Italian hands, since Capri Holdings quotes on the US stock market.
Prada assures that Versace has without exploiting growth potential
From Prada they point out that the incorporation of Versace into the group’s portfolio is “Very complementary” and “It shows an important without exploiting growth potential”They also assure that, within the group, Versace will maintain its creative DNA and its cultural authenticity, and will benefit from the strengths of Prada Group. Among these, the industrial capacities, retail execution and operational experience stand out.
They also point out that the operation is based on shared values around Creativity, crafts and tradition. “Our goal is to continue the legacy of Versace, celebrating and reinterpreting its bold and timeless aesthetics; At the same time, we will give you a solid platform, reinforced by years of continuous investment and rooted in lasting relationships“Patrizio Bertelli, President and Executive Director of the Prada Group, said.”Our organization is prepared and well positioned to write a new page in the history of Versace”
It also points out that acquisition is a step in the Prada evolution, that has reinforced processes and verticalized the organization of its brand. “The road will be long and will require discipline and patience. The evolution of a brand always requires time and a constant approach”; Andrea Guerra, executive director of Prada Group.”I would like to thank Capri Holdings for having preserved and enriched the legacy of this wonderful brand. Despite the uncertainties of the sector, we look at the future with confidence, focused on a long -term strategic vision”
Versace was founded in 1978 in Milan And it has become one of the main international fashion design houses and a reference of the Italian luxury worldwide. From Prada they define it as a deeply rooted brand in the history of fashion, and with great potential to interpret contemporaneity and a marked sensitivity to capture and anticipate the spirit of society.
Capri Holdings, owner of Michael Kors and Jimmy Choo, put Versace for sale after the United States Federal Commission for the United States blocked fusion with Tapestry, owner of Coach, Kate Spade and Stuart Weitzman. The group launched a restructuring and has given priority to the Michael Kors business.
The operation returns weight to Italian presence In the category, since some of the traditional brands of the country have ended, with the passage of time, as part of conglomerates of French origin. This has caused Italy to lack large scale groups comparable to LVMH, owner of Louis Vuitton, or Kering, owner of Gucci.
The acquisition of Versace by Prada occurs just a month after Donatella Versace announced her resignation as creative director of the brand, created by her brother Gianni.
