Prada to buy rival fashion brand Versace for $1.36bn

Prada has agreed to buy Versace in a billion-dollar deal. This merger will unite two major designer fashion labels. The estimated value of the deal is $1.36 billion (£1.06 billion), according to the Prada Group.

Prada chairman Patrizio Bertelli stated, "We aim to continue Versace's legacy." He emphasized celebrating and re-interpreting its bold aesthetic. The Prada Group already owns other brands like Miu Miu and Church's.

Acquiring Versace will create a multi-billion dollar luxury group. This positions them to compete with LVMH and Kering, two French luxury giants. Negotiations between Prada and Capri began in February.

The price for Versace is lower than the $2.15 billion Capri paid in 2018. The deal includes Versace's debt, as it has been operating at a loss recently. There has been a slowdown in demand for luxury fashion worldwide.

Capri also owns brands like Jimmy Choo and Michael Kors. Bertelli believes the Prada Group will provide Versace with "a strong platform." Andrea Guerra, Prada's CEO, noted that Versace has huge potential but requires patience.

In March, Donatella Versace stepped down as creative director after nearly 30 years. She took over after her brother Gianni was murdered in 1997. At 69, she now serves as chief brand ambassador for Versace.

Dario Vitale, former design director of Miu Miu, is the new chief creative officer.