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Prada Closes €1.25 Billion Purchase of Versace

Prada’s next step is folding Versace into its Italian manufacturing network to rebuild the brand after years of weak sales.

Overview

  • Analysts expect near-term pressure on Prada’s margins as Versace, currently unprofitable, requires reinvestment to return to growth.
  • Lorenzo Bertelli will become executive chairman of Versace once integration is complete.
  • Capri Holdings said it will use the proceeds to pay down debt and strengthen its balance sheet.
  • Prada will integrate Versace into its Made-in-Italy production and artisan training infrastructure following recent factory investments.
  • Versace is in a creative reset under chief creative officer Dario Vitale after Donatella Versace’s exit, with his debut drawing strong buyer interest.