Prada SpA has officially agreed to purchase iconic fashion house Versace for $1.38 billion in cash, marking the largest acquisition in the company’s 112-year history. The deal returns Versace to Italian ownership and strengthens Prada’s position as Italy’s leading fashion group, enhancing its ability to compete with global luxury giants like LVMH and Kering SA.
Under the terms of the agreement, Prada will acquire 100% of Versace, with a total enterprise value of €1.25 billion ($1.375 billion), on a debt- and cash-free basis.
Founded by Gianni Versace in 1978, the Milan-based brand is known worldwide for its bold, glamorous aesthetic and holds a prominent place in the global luxury market. Versace’s strong brand recognition and distinctive style make it a strategic addition to the Prada Group’s portfolio.
“With its highly recognisable aesthetic, the brand constitutes a strongly complementary addition to the Prada Group’s portfolio and displays significant untapped growth potential leveraging multiple value creation levers,” Prada said in a statement.
Versace will retain its creative identity and cultural authenticity while gaining access to Prada’s extensive platform, including its industrial capabilities, retail infrastructure, and operational expertise.
Patrizio Bertelli, Chairman and Executive Director of the Prada Group, expressed enthusiasm about the acquisition. “We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship and heritage,” he said. “We aim to continue Versace’s legacy, celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”
“Our organisation is ready and well positioned to write a new page in Versace’s history, drawing on the Group’s values while continuing to execute with confidence and rigorous focus.”