According to reliable sources, Prada SpA will acquire Versace from Capri Holdings Ltd. for nearly €1.5 billion ($1.6 billion)!
The Milanese firm, Prada SpA, and Capri are likely to finalise the acquisition of the Italian luxury brand, Versace, this month. The source of this information is some confidants, and they have requested to remain unnamed due to the private nature of the discussions. After the initial due diligence, in which the Italian firm assessed Versace with its advisers to gain exclusive insight into the brand’s latest financial performance and sales data. After not seeing any red flags, talks for the acquisition are moving forward at Godspeed.
However, both the timeline and the financial terms could still shift drastically, causing the whole discussion to collapse. Capri initially purchased Versace in 2018 for about €1.8 billion and has not responded to any inquiries on Sunday, and Prada has opted not to comment.
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On Monday morning in Hong Kong, Prada’s stocks saw a spike of 3.9% after the news of its acquisition deal of Versace became public. By acquiring the Italian fashion house, which was founded by the late legendary fashion designer Gianni Versace in 1978, Prada would be able to establish a more challenging Italian competitor against larger global luxury entities such as LVMH and Kering SA.
If the acquisition becomes successful, the landscape of the Italian fashion market can see a drastic shift as many other domestic luxury brands like Gucci and Valentino have been acquired by foreign entities. Prada has risen like a phoenix amidst the global downturn of the high-end fashion sector with its significant sales growth reported in the last year’s third quarter, reason being the young consumers admiration towards their Miu Miu line.
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In conclusion, it is safe to say that the luxury fashion industry is going through a significant change in its landscape, with global giants doing everything to incline their consumers’ interests to their side.
