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Prada Buys Versace For $1.38 Billion To Form Italy's Largest Fashion Group
- Prada SpA has acquired Versace for $1.38 billion in cash, solidifying its position as Italy's largest fashion group.
- The purchase marks the return of Versace to Italian ownership and enhances its ability to compete with major luxury brands like LVMH and Kering SA.
- The deal is Prada's largest in its 112-year history and is expected to close in the latter half of the year.
- Prada's acquisition of Versace adds diversity to its offerings and reverses its trend of debt-laden acquisitions from the past.
- Versace's purchase by Prada signifies a deviation from the trend of Italian fashion houses being bought by foreign companies.
- Capri Holdings Ltd., the previous owner of Versace, failed to double its revenue target, leading to the decision to sell the brand to strengthen its balance sheet.
- Prada's M&A activity follows its successful 2024 performance, with its Miu Miu label contributing significantly to its revenue growth.
- The acquisition is seen as a strategic move to boost Prada's luxury identity, especially with the involvement of Lorenzo Bertelli in ownership and operational roles.
- Miuccia Prada, known for her unique style, will not be directly involved in the creative direction of Versace post-acquisition.
- Versace has appointed a new chief creative officer, Dario Vitale, in light of the recent acquisition by Prada.
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