Prada to buy Versace in a $ 1.4 billion deal

Prada Group announced on Thursday to buy Versace from Italy from the Capri Holdings in the United States under conditions estimated at 1.25 billion euros ($ 1.4 billion).

Prada said that adding “aesthetic that can be very recognized … constitutes a strong complementary addition” to its wallet, which includes fashion brands Prada and MIU MIU. She said that Milan -based Versace provided “great growth potential.”

The final value of the deal will be modified at the closure, expected in the second half of the year. It will be funded by 1.5 billion euros of new debts and approved by Prada and Capri Holdings.

“Versace will maintain creative DNA and cultural originality, taking advantage of the full power of the group’s large platform, including industrial capabilities, retail and operational expertise,” Brada said in a statement.

Versace, founded in 1978 by the late Gianni Versace, was owned by 2018 by Capri Holdings, which includes Michael Kors and Jimmy Chu.

Capri Holdings paid two billion dollars for Versace, but she was struggling in the last “luxury” era of Italian fashion mode with her exciting silhouette and loud styles.

Last month, Capri Holdings Dario Vitale was appointed creative director to replace Donatella Versace, who took over the role after her brother was killed in 1997. Vitale came from Miu Miu, the successful brand that young people drive stunningly in the Prada group.

Versace has given a new role for the great brand ambassador to The Shakeup, which was widely seen as putting the scene to sell the long -range Prada. Miuccia Prada admitted the group’s interest on the sidelines of the Milan Fashion Week in February.