Prada shopping for rival vogue model Versace in $1.36bn deal | EUROtoday

Prada has agreed to purchase its smaller rival Versace in a billion greenback deal to unite two of the largest designer vogue labels.

The deal to unite the 2 Italian manufacturers has an estimated worth of $1.36bn (£1.06bn), the Prada Group stated on Thursday.

“We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic,” stated Prada chairman Patrizio Bertelli.

The Prada Group already owns a number of different designer labels together with Miu Miu and luxurious footwear model Church’s.

Its acquisition of Versace will create a multi-billion greenback luxurious vogue group, placing the manufacturers ready to compete with the likes of French luxurious vogue conglomerates LVMH and Kering.

Negotiations to purchase Versace between Prada and Capri started in February.

The worth Prada agreed to pay for Versace is considerably decrease than the $2.15bn that Capri Holdings spent when it purchased Versace in 2018.

The deal, which incorporates the model’s debt pile, comes as Versace has been working at a loss amid a slowdown in demand for luxurious vogue worldwide.

Capri additionally owns different fashions manufacturers together with Jimmy Choo and Michael Kors.

Mr Bertelli stated that the Prada Group would supply Versace with “a strong platform”.

“Versace has huge potential. The journey will be long and will require disciplined execution and patience,” added Andrea Guerra, the chief govt of Prada.

In March, Donatella Versace stepped down from her artistic director position on the luxurious model after almost 30 years.

She had held the place since 1997 and took over after the homicide of her brother Gianni.

The 69-year-old has a brand new position because the chief model ambassador for Versace, whereas Dario Vitale, who’s a former design and picture director of Miu Miu, took over as chief artistic officer.