- Fashion brand Prada has agreed to buy Italian fashion house Versace
- Versace was previously up for sale with Capri Holdings
- Donatella Versace, the former creative director, stepped down in March
Well, it is the solidarity of the Italian fashion houses, because Prada has agreed to buy Versace in a deal. The deal comes after the other Italian brand was up for sale through its owner, Capri Holdings.
The news was announced on 10 April. Ironically, the two Italian brands are longtime rivals. Another big blow to the brand came in March, when creative director and fashion designer Donatella Versace announced she was stepping down after 30 years.
On her job, the 69-year-old said it was “The greatest honor of my life to carry on my brother Gianni’s legacy”. She added that the brand is “in her DNA”.
Read more: Remember That Donatella Versace Meme?
Following her brother Gianni Versace’s murder in 1997, the fashion designer took over the brand and elevated its style. Now, she will be replaced by Dario Vitale, a former designer for Miu Miu.
Reports indicated that Prada was interested in buying their rival, but nothing was confirmed until today. Fashion girls, we can rest, as the brand has a new home.
With the brand now in the hands of another Italian company, it’s time to unpack the deal.
How much did Prada pay?
The BBC reports that the Italian brand was acquired by its rival for $1.36 billion.
After the news was announced, Chairman of Prada Patrizio Bertelli said of the deal: “We aim to continue Versace’s legacy, celebrating and re-interpreting its bold and timeless aesthetic.”
Currently, Prada owns Luna Rossa, Marchesi 1824, and Miu Miu, the brand with which Vitale was previously associated.
Acquiring two rival brands and combining them is a big deal. As the BBC states, it will “create a multi-billion dollar luxury fashion group”. Economically, it is sensible to combine brands to compete with other luxury brands in European countries. (Yes, we’re looking at you, France.)
Following negotiations, the deal to acquire the other fashion house only took two months.
Capri Holdings seems to be at a loss here, as they bought the brand in 2018 for $2.15 billion. On the other hand, the Italian fashion house paid much less in their deal.
The chief executive of Prada said on acquiring the fashion house: “Versace has huge potential. The journey will be long and will require disciplined execution and patience”.
At the moment, the Italian brand has a hefty debt with its sale, reportedly $1.375 billion.
Good luck fixing that. Regardless of how much the sale was for, we are just glad to see Italian fashion brands thriving!
