Prada plans to acquire Versace: the deal worth 1.5 billion euros may be completed this month
Kyiv • UNN
Milan-based Prada is negotiating the purchase of Versace brand from Capri Holdings Ltd for EUR 1.5 billion. The deal could be finalized as early as this month, allowing Prada to strengthen its position in the luxury brand market.
Milan-based Prada is nearing the completion of the deal to buy the Italian brand Versace from Capri Holdings Ltd. for almost EUR 1.5 billion. The deal is expected to be finalized this month. This is reported by Bloomberg with reference to its sources, UNN reports.
Details
According to the information, Prada and Capri intend to sign an agreement, although, as the sources clarify, there may still be changes in the assessment or time of completion of negotiations.
The acquisition of Versace will allow Prada to strengthen its position in the global luxury market, where it is already successfully competing with such giants as LVMH and Kering.
It is known that Capri acquired Versace in 2018 for 1.8 billion euros, but is now considering selling the brand due to its declining profitability, as Versace's revenues decreased by 15% in the last quarter.
If the deal is completed, Prada will have access to the famous brand founded by Gianni Versace and will be able to create a more powerful Italian corporation to compete in the international market. The acquisition is also expected to be a significant step in strengthening Italian brands in the globalized world.
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