Prada has agreed to buy its smallest rival Versace in an agreement of $ 1 billion to unite two of the largest designer fashion labels.
The agreement to unite the two Italian brands has an estimated value of $ 1.36 billion (1.06 billion pounds Sterling), the Prada group announced on Thursday.
“We aim to continue the heritage of Versace to celebrate and reinterpret his daring and timeless aesthetic,” said Prada president, Patrizio Bertelli.
The Prada group already has several other creative labels, including Miu Miu and Luxury Footwear Brand Church’s.
Its Versace acquisition will create a luxury fashion group of several billion dollars, putting the brands in a position to compete with French luxury fashion conglomerates LVMH and Kering.
Negotiations to buy Versace between Prada and Capri began in February.
The Prada price has agreed to pay for Versace is significantly lower than 2.15 billion dollars that Capri Holdings spent when it bought Versace in 2018.
The agreement, which includes the brand’s debt heap, comes when Versace worked at the moment of a slowdown in luxury mode demand in the world.
Capri also has other fashion brands, including Jimmy Choo and Michael Kors.
Bertelli said the Prada group would provide Versace with a “solid platform”.
“Versace has enormous potential. The trip will be long and will require disciplined execution and patience,” added Andrea Guerra, director general of Prada.
In March, Donatella Versace resigned From its role as creative director at the luxury brand after almost 30 years.
She had held the post since 1997 and took over after the murder of her brother Gianni.
The 69 -year -old has a new role as an ambassador of the Versace chief brand, while Dario Vitale, who is a former director of design and image of Miu Miu, took the post of director of creation.
