Luxury fashion conglomerate Prada acquires Versace at a cost of € 1.25 billion
In a significant move within the fashion industry, Italian luxury giants Prada and Versace have revealed that Prada will acquire Versace for a reported €1.25 billion. The deal, anticipated to finalize in the second half of 2025, is contingent on regulatory approvals and certain other conditions.
The acquisition, marking Prada's foray into the luxury lifestyle sector, will be financed by a long-term loan of €1 billion secured by Prada. This strategic move aims to provide Versace with a robust platform built on years of investment and long-standing relationships.
Established in 1978 by designer Gianni Versace, Versace has since expanded to operate 230 boutiques and 638 licensed shops worldwide. The company offers a diverse range of products, including women's, men's, and children's fashion, shoes, bags, accessories, eyewear, watches, and perfume.
Prada's CEO, Patrizio Bertelli, expressed his enthusiasm about the acquisition, stating, "We want to continue Versace's legacy, celebrate and reinterpret its bold and timeless Italian aesthetic." He further added that the acquisition underscores Prada's commitment to cultivating and growing iconic fashion brands.
Since Gianni Versace's untimely death in 1997, his sister Donatella has helmed the creative direction of the company. Under her leadership, Versace has maintained its unique identity and has remained a symbol of Italian luxury and glamour.
The cash payment for the acquisition is based on an enterprise value of €1.25 billion and is subject to adjustments at closing. The specific terms and conditions of the acquisition are not disclosed at this time.
The acquisition of Versace by Prada is notable not only for the fashion industry but also for the Italian economy. Both brands are Italian icons, and their merger is expected to create a powerhouse in the luxury sector, further cementing Italy's reputation as a global leader in fashion and design.
As the deal approaches completion, fans of both Prada and Versace eagerly anticipate the future of these iconic Italian fashion houses. With Prada's commitment to preserving and enhancing Versace's legacy, it seems that the future of Italian fashion is in capable hands.
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