Prada moves to expand luxury portfolio with $1.375 bn Versace deal

New Delhi: Prada has finalised its acquisition of Versace in a cash deal valued at $1.375 billion, marking the end of an eight-month process between the Italian luxury groups. The transaction was completed on December 2, coinciding with what would have been founder Gianni Versace’s 79th birthday.

The deal, previously announced on April 10, transfers Versace from Capri Holdings to Prada in what is being viewed across the fashion industry as an effort to stabilise the brand following several years of weaker performance under its US parent company, particularly after the pandemic.

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 In a brief statement, Prada confirmed the completion of the acquisition following regulatory clearance. Capri Holdings, which also owns Michael Kors and Jimmy Choo, said it would use the proceeds of the sale to reduce debt.

Donatella Versace acknowledged the development in an Instagram post, paying tribute to her late brother Gianni Versace as she welcomed the transition.