Prada Expands Its High-End Portfolio
Prada announced on Tuesday that it acquired Versace and brought two major Italian luxury houses under one roof. The company paid $1.38bn, well below the roughly $2bn that Capri Holdings invested in Versace in 2018. The deal enlarges Prada’s portfolio, which includes Miu Miu, and strengthens its stance against rivals like LVMH, owner of Dior, Fendi and Louis Vuitton.
A Major Transition for Versace
Donatella Versace stepped down in March after 27 years defined by glamour and the iconic Medusa logo. She assumed leadership in 1997 after the murder of her brother Gianni and guided the house through decades of change. Dario Vitale replaced her and brought experience from his role as design director at Miu Miu, Prada’s youth-focused luxury label.
A Sale Shaped by Weakening Results
The company is being sold at a loss of about $700m after Versace’s sales slowed. Capri Holdings also reported weaker performance from its other brands, including Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace moved away from ornate designs and embraced a minimalist trend while raising prices sharply.
Prada Confirms Completion of the Takeover
Prada stated in a brief announcement that it completed the Versace acquisition after receiving all required regulatory approvals. Capri Holdings said it will use the proceeds to reduce its debt significantly. Chief executive John D. Idol explained that the repayment will strengthen the firm’s balance sheet.
Looking Ahead With Cautious Optimism
Prada chief executive Andrea Guerra said earlier this year that Versace holds huge potential. He added that the upcoming journey will require careful execution, long-term planning and patience.
