In a huge business move for the high fashion world, Prada has announced its agreement with Capri Holdings to acquire 100 percent of Versace.
The purchasing agreement is based on a cash valuation of €1.25 billion, though the final total is subject to adjustment before closing.
Both Prada and Versace are leaders of the luxury fashion industry with Italian roots. This merger marks a major coming together of powerhouse brands and Italian excellence.
The announcement adds that the Versace design house will maintain its unique creative identity and cultural importance inside the Prada Group.
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“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship and heritage,” Patrizio Bertelli, Prada Group Chairman and Executive Director, is quoted in the press release. “We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships. Our organization is ready and well positioned to write a new page in Versace’s history, drawing on the Group’s values while continuing to execute with confidence and rigorous focus.”
“The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary,” adds Andrea Guerra, Group Chief Executive Officer. “The Group’s infrastructure is strong, we have verticalized our brands’ organizations and reinforced our routines and processes. We feel ready to open this new chapter. Versace has huge potential. The journey will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus. I would like to thank Capri Holdings for having preserved and enhanced the heritage of this wonderful brand. Notwithstanding the sector uncertainties, we look at the future with confidence, focused on a long-term strategic vision.”
