 "Prada to buy Versace for $1.375 bn, uniting top Italian fashion houses")
Prada has struck a deal to buy smaller rival Versace from Capri Holdings in a move to unite two of the biggest names in Italian fashion.
The deal has an enterprise value of $1.375 billion, Prada said on Thursday. Prada is seeking to expand, having defied a slowdown in luxury demand, while Versace has been operating at a loss. The merger strengthens Italy's hand in a luxury industry led by French conglomerates.
"We aim to continue Versace's legacy celebrating and re-interpreting its bold and timeless aesthetic," said Prada Chairman Patrizio Bertelli.
"At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships," he added.
The price Prada has agreed to pay for Versace is a big discount to the roughly $2.15 billion including debt that Capri paid for Versace in 2018. Previously known as Michael Kors, Capri bought Versace from the Versace family and Blackstone.
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