Prada shocks the fashion world: EUR 1.25 billion for Versace!
Prada shocks the fashion world: EUR 1.25 billion for Versace!
Vienna, Österreich - Today, on April 10, 2025, Prada announced the purchase of the Italian fashion house Versace for 1.25 billion euros. This step takes place as part of a 100 percent participation, which Capri Holdings acquired. The deal, which is set in the company value of 1.25 billion euros, could be subject to adjustments at the final time. A conclusion of the purchase is expected for the second half of 2025, with the reservation of the approval by the relevant authorities, such as vienna.at
Prada has secured a long -term loan of 1 billion euros to finance the purchase. Patrizio Bertelli, the CEO of Prada, explained the intention of continuing and reinterpreting the inheritance of Versace and celebrating its characteristic aesthetics. Versace itself was founded by Gianni Versace in 1978 and has since developed into an important player in the luxury segment. After the murder of Gianni Versace in 1997, his sister Donatella took over the creative direction of the company, which, however, was released in March 2025.
challenges in the luxury segment
The purchase of Versace can also be seen in the context of losses of the company and the global pressure in the luxury market. According to The press is the acquisition of continuing Pradas expansion course, while the luxury market is affected by cooling down demand. Interestingly, the contract price is below the value of around $ 2.15 billion that Capri Holdings paid for Versace in 2018.
Versace operates over 230 boutiques and 638 licensed shops worldwide and offers a wide range of women's, men's and children's fashion, shoes, bags, accessories, glasses, watches and perfume. However, the company does not seem to prevent the overall economic challenges from performing strategic maneuvers such as selling to Prada.
the view of the luxury market
The takeover of Versace by Prada falls during a time when the fashion and luxury sector still remains attractive despite geopolitical tensions and economic challenges for investors, according to Deloitte. In the eighth edition of the Global Fashion & Luxury Private Equity and Investors Survey 2023, the closest segments in the industry were identified that are of interest to investors, including cosmetics, clothing and watches.
A total of 292 M&A transactions in the sector were recorded worldwide in 2022, which is a slight increase compared to the previous year. While Europe recorded the strongest growth in these transactions, market researchers show an interesting shift to Asia and the Middle East, where greater growth is expected compared to Europe and the USA.
The takeover of Versace by Prada could therefore be seen as a strategic step to gain a stronger foot in a luxury segment dominated by French brands. Both companies face the challenge of asserting their identity and market position in an constantly changing environment, while at the same time the expectations of global customers have to be taken into account.
| Details | |
|---|---|
| Ort | Vienna, Österreich |
| Quellen | |
Kommentare (0)