Laila Kirkpatrick, Staff Writer
The luxury brand Prada has announced a deal to buy crosstown Milan fashion rival Versace from the U.S. luxury group Capri Holding under terms that value it at around $1.4 billion. This deal with Versace gives Prada another large brand. Prada’s more youth-driven company Miu Miu has grown at an impressive rate outpacing the market. Prada added that their purchase of Versace would give them “significant untapped growth potential.”
Lorenzo Bertelli said, “This is exactly the strength of our group. There is no overlap in terms of creativity, in terms of customer.” Bertelli went on to say, “We are buying a brand with huge potential, with a very recognizable aesthetic.” This sale would underline the Versace brand name recognition, putting it among the top 10 in the world, far outweighing its business performance. The final value of the deal will be adjusted at closing, which is expected in the second half of the year.
