"The Prada Group closed the purchase of Milan fashion rival Versace in a $1.375 billion cash deal that puts the fashion house known for its sexy silhouettes under the same roof as Prada's "ugly chic" aesthetic and Miu Miu's youth-driven appeal.The highly anticipated deal is expected to relaunch Versace's fortunes, after middling post-pandemic performance as part of the U.S. luxury group Capri Holdings.Prada said in a one-line statement that the acquisition had been completed after receiving all regulatory clearances. Capri Holdings, which owns Michael Kors and Jimmy Choo, said the money would be used to pay down debt.Donatella Versace welcomed the deal in an Instagram post, which also marked the birthday of the brand's late founder, her brother, Gianni Versace."Today is your day and the day Versace joins the Prada family. I am thinking of the smile you would have had on your face," she wrote in a post that also featured a 1996 photo of Gianni Versace with Miuccia Prada."
"Prada heir Lorenzo Bertelli is set to steer Versace's next phase as executive chairman, in addition to his roles as group marketing director and sustainability chief.The son of co-creative director Miuccia Prada and longtime Prada Group chairman Patrizio Bertelli has said he doesn't expect to make any swift executive changes at Versace, although he also noted that the company, which is among the top 10 most recognized brands in the world, has long been underperforming in the market.Prada has underlined that the 47-year-old Versace brand offered "significant untapped growth potential."The appeal of the deal is that it combines "the minimalist Prada (with) a maximalist Versace," said Luca Solca, an analyst at Bernstein Group consulting firm, meaning that the brands don't compete for the same customers.Versace is "long past its heyday," Solca said. "The challenge and the opportunity is to make it relevant again. . . . They are going"
Prada Group completed a $1.375 billion cash acquisition of Versace after receiving regulatory clearances, with Capri Holdings using proceeds to pay down debt. Donatella Versace publicly welcomed the move and referenced founder Gianni Versace. Lorenzo Bertelli will assume the role of Versace executive chairman while retaining group marketing and sustainability responsibilities. Prada views Versace as a globally recognized brand with significant untapped growth potential and intends to preserve distinct brand positioning alongside Prada and Miu Miu. Analysts noted complementary aesthetics and the commercial challenge of making Versace relevant again following weaker post-pandemic performance.
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