The purchase, the largest in Prada’s 112-year history, returns Versace to Italian ownership and could put the company in a better position to compete with bigger luxury rivals such as LVMH and Kering SA. The deal also gives Versace a shot at the turnaround Capri hasn’t been able to deliver.
Prada SpA agreed to buy Versace for about US$1.38 billion ($1.84 billion) in cash, strengthening its position as Italy’s largest fashion group by adding one of the luxury industry’s best-known brands.
The Milan-based company, controlled by billionaire designer Miuccia Prada and her husband Patrizio Bertelli, is buying Versace from Capri Holdings Ltd., which paid €1.8 billion for the brand in 2018.
