News from Italy
Prada buys Versace for 1.25 billion euros
According to the group’s official announcement, Versace, the iconic Italian fashion house, has made a nostalgic return to its roots in Italy after a significant 6-year stint in the US. The brand has been acquired by the esteemed Prada Group for a substantial 1.25 billion euros, marking an important chapter in its history and evoking a sense of connection to its Italian heritage.
Medusa has returned to Italy after more than 6 years in the US. Prada announced that it has acquired 100% of Versace from Capri Holdings. The cash consideration will be based on an enterprise value of 1.25 billion euros and is subject to adjustments at closing. Before the announcement, shares of Prada Hong Kong, which had been listed since 2011, rose by almost 5%. According to the group’s official announcement, the Prada Group acquired Medusa for 1.25 billion euros and returned to Italy after more than 6 years in the US.
The esteemed Prada Group, under the visionary leadership of Patrizio Bertelli, president and executive director, announced Versace’s acquisition on Thursday, April 10. Bertelli’s leadership, along with that of his wife, Miuccia Prada, has been instrumental in the company’s success. Bertelli reassures the audience about Versace’s future under his guidance. The announcement marked a significant milestone in the fashion industry.
Within the Group, according to the official press release, Versace will maintain its creative DNA and cultural authenticity while benefiting from the strength of the Group’s platform. This includes industrial know-how and expertise developed in retail and operational processes. Bertelli himself stated, “We are delighted to welcome Versace into the Prada Group and to start a new chapter for a brand with which we share an ongoing commitment to creativity, product care and a strong cultural heritage. Our goal is to give continuity to the Versace legacy, instilling confidence in the audience about the brand’s future direction. Our organisation is ready and well positioned to write a new page in the history of Versace, leveraging the Group’s values and continuing to operate with confidence and rigorous determination”.
Andrea Guerra, CEO of Prada, echoed this sentiment: “The acquisition of Versace represents a further step in the evolutionary path of our Group and adds a new, different and complementary dimension. The group’s infrastructure is strong; we have verticalised our brand organisations and strengthened our routines and processes. We feel ready to open this new chapter. Versace has enormous potential. The journey will be very long and will require patience and discipline in execution. The evolution of a brand requires time and continuous care. I want to thank Capri Holdings for preserving and further enriching the heritage of this magnificent brand. Despite the period of great uncertainty, we look to the future with confidence, projected on a long-term strategic vision that ensures the growth and prosperity of Versace under Prada’s ownership”.
Founded in 1978 in Milan, Versace is one of the leading international fashion houses and an emblem of Italian luxury worldwide. It is back in Italian hands after more than 6 years in the United States, with Prada acquiring it from the American Capri Holdings for 1.25 billion euros. Capri Holdings, which includes luxury brands such as Michael Kors and Jimmy Choo, acquired Versace for 2.1 billion dollars in 2018 as part of a plan to create a global luxury fashion group. In 2023, Capri had agreed to sell itself to Coach owner Tapestry for 8.5 billion dollars. The deal was seen as a strategic move to strengthen both companies’ positions in the luxury fashion market. However, the deal fell through in 2024 after the Federal Trade Commission said the merger would harm competition for affordable luxury handbags. This development, coupled with Versace’s poor performance, has increased pressure on Capri to sell the struggling company, as highlighted by AGI.