Italian fashion giant Prada acquires Versace at discount

Prada announced its acquisition of Versace on Tuesday, combining two of Italy’s biggest luxury fashion brands into one.

this $1.38bn (£1.04bn) deal That’s far less than the roughly $2 billion Versace’s former parent company, Capri Holdings, paid for the brand in 2018.

The acquisition expands Prada’s portfolio of designer brands, which includes Miu Miu, as it seeks to compete with rivals including French group LVMH, which, in addition to Louis Vuitton, also owns Dior and Fendi.

Famous designer Donatella Versace Resigned as brand creative director in March 27 years with the fashion house known for its glamorous style and iconic Medusa head logo.

She took over the company in 1997 after her brother Gianni was murdered. Her replacement is Dario Vitale, the former design director of Miu Miu, Prada’s luxury brand for young people.

The company was sold for a loss of about $700 million due to slowing sales of Versace and the sale of Capri Holdings’ other brands, including Michael Kors and Jimmy Choo.

During Capri Holdings’ ownership, Versace shifted away from the ornate designs for which it was known and toward more minimalist trends while raising prices.

Prada said in a brief statement on Tuesday that it had successfully completed its acquisition of Versace and had received all necessary regulatory approvals.

The company said proceeds from the sale would help reduce the debt of Capri Holdings, Versace’s former parent.

“We plan to use the proceeds to repay a substantial portion of our debt, which will significantly strengthen our balance sheet,” Capri CEO John D Idol said.

Andrea Guerra, CEO of Prada said earlier this year Versace has “huge potential.”

“This process will be long and require rigorous execution and patience,” he said.