Prada Completes Versace Takeover!
Rome, Dec 2 (EFE).–
The Prada Group on Tuesday completed its $1.35 billion acquisition of fashion house Versace, the Italian luxury group said.
“Prada announces the successful completion of the acquisition of Versace from Capri Holdings after having received all required regulatory clearances,” the Italian luxury group said in a brief statement.
Capri Holdings confirmed the value of the transaction, noting that proceeds from the sale will be used to pay down most of the company’s debt.
When the acquisition was announced in April, Prada, one of Italy’s most prestigious fashion labels, had indicated an expected purchase price of €1.25 billion (about $1.45 billion).
Capri Holdings chairman and CEO John D. Idol said the sale would help strengthen the company’s financial position.
“With the successful completion of the sale of Versace, we plan to use the proceeds to repay the majority of our debt, which will substantially strengthen our balance sheet,” Idol said in a separate statement.
“This transaction will significantly reduce our leverage ratio and provide greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future.”
He said the company remained “focused on executing our strategic initiatives across Michael Kors and Jimmy Choo to maximize the potential of our iconic brands.”
Idol wished the Versace team “continued success in the future.”
“Prada is the ideal partner to guide this celebrated luxury house into its next era of growth.”
He also thanked the brand’s leadership, singling out Donatella Versace, Dario Vitale and Emmanuel Gintzburger for their “outstanding leadership and commitment to the brand’s evolution.”
Looking ahead, Lorenzo Bertelli, son of Miuccia Prada and heir to the group, confirmed on Nov. 19 that he will assume the role of executive chairman of Versace once the acquisition is fully completed.
Bertelli said finalizing the Versace deal was the group’s “priority,” adding that Prada is not currently considering the acquisition of another flagship brand such as Armani, despite Giorgio Armani having stipulated in his will that his company be sold to a major conglomerate after his death in September.
The European Commission cleared the Versace acquisition in September, concluding that it posed no risk to competition.
The deal boosts hopes of consolidating a major “Made in Italy” luxury powerhouse at a time when multiple family-owned Italian fashion houses have been absorbed by French, Swiss, or US groups.
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