Prada Acquires Versace
Prada has announced its acquisition of Versace from Capri Holdings in a deal valued at €1.25 billion. This move brings Versace back under Italian ownership, aligning with Prada’s ambitions to expand its influence in the global luxury market.
Capri Holdings, which also owns brands like Michael Kors and Jimmy Choo, acquired Versace in 2018 for about €1.8 billion. However, Versace has faced financial challenges in recent years, including a 15% decline in revenue, reporting $193 million in the third quarter of its fiscal year. This underperformance increased pressure on Capri Holdings to divest the brand.
Thee acquisition aims to diversify Prada’s brand portfolio and appeal to a broader segment of luxury consumers. Prada’s CEO, Andrea Guerra, highlighted the potential of Versace and emphasized the importance of strategic execution to revitalize the brand.
This acquisition also positions Prada to compete more robustly with French luxury conglomerates like LVMH and Kering, enhancing Italy’s presence in the luxury fashion sector.
The acquisition price of €1.25 billion represents a significant discount compared to the €1.8 billion that Capri Holdings paid in 2018. This reflects Versace’s recent financial struggles and the broader challenges faced by the luxury sector amid global economic uncertainties.
