Prada Versace acquires for 1.25 billion euros to form 6 billion euros from a luxury group

Prada announced on Thursday a prominent agreement to obtain Versace from Capri Holdings for 1.25 billion euros, which indicates the largest deal on the previous 112 -year history. The acquisition process is preparing to create a luxury group with revenues exceeding 6 billion euros, and Prada is to compete better with French LVMH and KERING blocs.

This strategic step comes amid a global slowdown in the luxury sector, and is seen as a pivotal step for what Prada is strengthening his position in the market.

Andrea Magha, CEO of Brada, stressed the strategic importance of this acquisition, saying: “Versace’s acquisition is another step in the evolutionary journey of our group, adding a new, different and supplementary dimension.” The most prominent Guerra also, “Versace has enormous potential. The journey will be long and will require executions and disciplined patience.” These comments confirm Prada’s commitment to integrate Versace effectively into its wallet.

Before the deal was completed, there was speculation that Prada negotiated the purchase price due to the pressures related to the tariff. In March, Prada recorded a 15 % increase in net annual sales, reaching 5.4 billion euros, which also indicates its strong financial health amid the acquisition.

The main driver of the last Prada’s success was the migraine brand, MIU MIU, which recorded a wonderful 93 % impartial increase last year. The acquisition of Versace, known for its maximum designs, complements the simple aesthetics of Prada and MIU MIU, which may settle on periodic performance.

The acquisition is done during the difficult times of luxury brands, many of which are offered due to low spending on consumers. A temporary cessation of the customs tariff against Europe provides a brief decrease in this industry, allowing Prada to strategy and put itself for recovery. The acquisition is not only the current sector trends, but also turns into Prada sites useful for future growth.

After the acquisition of the acquisition, the shares of Prada increased by approximately 5 %, reflecting the investor’s confidence in the company’s strategic direction. This acquisition is a testament to strategic insight, as it combines brands with distinctive aesthetics to enhance market stability and competitive advantage.