A store of Versace located in Brussels, Belgium. Reuters=Yonhap News
Reports have emerged that the Italian fashion giant Prada is nearing the acquisition of the renowned fashion brand Versace for up to 1.5 billion euros (approximately 2.28 trillion won).
Bloomberg News reported on the 2nd (local time), citing multiple anonymous sources, that Prada has taken a step closer to a related agreement with Capri Holdings, the parent company of Versace.
The sources explained that the deal could be finalized within this month but also mentioned that the timing or amount of the agreement could change, and there is still a possibility of negotiation failure.
Prada and Capri Holdings did not comment on Bloomberg’s request for remarks.
Capri Holdings was formerly Michael Kors Holdings, established in 1981 by the renowned American fashion designer Michael Kors.
Michael Kors Holdings acquired Jimmy Choo in 2017 and Versace in 2018, subsequently changing its name to Capri Holdings. At the time, the amount spent on acquiring Versace was 2.1 billion dollars (about 1.85 billion euros, approximately 2.81 trillion won at the current exchange rate), with plans to significantly expand Versace’s global stores.
Subsequently, Capri Holdings attempted to merge with Tapestry Holdings, which owns brands like Coach, but this was ultimately thwarted last year due to opposition from the U.S. antitrust authorities.
The Financial Times (FT) reported that Capri Holdings originally demanded 3 billion euros (around 4.56 trillion won) for the sale of Versace, and the negotiations had dragged on as other companies also expressed intentions to acquire. It further stated that while changes are possible, the negotiations are expected to conclude ‘within a few weeks.’
If Prada succeeds in acquiring Versace, it means reacquiring a famous Italian brand previously sold overseas. This differs from the trend of Italian brands like Gucci and Valentino being sold to foreign companies.
Through this agreement, Prada, the top company in the Italian luxury fashion industry, is expected to expand its scale and compete with the world’s largest luxury goods company, France’s LVMH, which owns Louis Vuitton, Christian Dior, and Fendi, and France’s Kering, which owns Gucci.