Italy's Prada agrees to buy fashion rival Versace for $1.3 billion
MILAN - Prada has struck a deal to buy smaller rival Versace from Capri Holdings to unite two of the biggest names in Italian fashion. The deal has an enterprise value of $1.375 billion, Prada said on Thursday.
Prada is seeking to expand, having defied a slowdown in luxury demand, while Versace has been operating at a loss. The merger strengthens Italy's hand in the luxury industry led by French conglomerates.
"We aim to continue Versace’s legacy, celebrating and re-interpreting its bold and timeless aesthetic," said Prada Chairman Patrizio Bertelli.
"At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships," he added.
The price Prada agreed to pay for Versace is a big discount to the roughly $2.15 billion including the debt that Capri paid for Versace in 2018. Previously known as Michael Kors, Capri bought Versace from the Versace family and Blackstone.