Prada will buy the luxury pioneer Versace for $ 1.38 billion from the American parent company Kapri Holdings.
The long -awaited deal will combine two leading Italian stickers in the luxury part, albeit with different wealth.
“The acquisition of Versace represents another step in the evolutionary journey of our group, adding a new, different and supplementary dimension,” said Andrea others, CEO of Prada, in a statement. “Versace has tremendous potential. The journey will be long and will require executing and disciplined patience.”
Speculation before completing the deal suggested that Brada had negotiated The initial purchase price From Versace due to the pressures related to tariffs.
The purchase process, which is the largest in its history in Prada in its 112 -year -old history, can be a big boost of the company amid a period of growth that challenges the sector.
Prada recorded a 15 % jump in net annual sales of 5.4 billion euros ($ 6 billion) in March. Miu Miu, the sister brand in Prada, was a fundamental role in the company’s last growth series, as its revenues increased by 93 % last year.
Gilina Sokolova in Burda and Miu Miu said that the acquisition of Prada Versace makes “the strategic meaning because both of these brands pass through fashion courses and multiple brand ownership with very different aesthetics (the maximum of Virchci and the minimum Brada and Miuo) helps calm the performance period.”
The deal comes in a difficult time For the other suppliersMany of them were influenced by a ride in consumer spending. The definitions had added another obstacle to the sector by harming consumer morale and raising prices. However, stopping 90 days on fees against Europe can give companies more time to put a strategy on their way forward.
The shares of Prada increased by approximately 5 % from 2 pm London time.
This is a developing story ...
This story was originally shown on Fortune.com
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