Prada nears €1.5bn Versace takeover deal
After months of talking between Prada and Capri, which owns brands including Michael Kors and Jimmy Choo, an agreement could come ‘within weeks’
Prada is reportedly edging closer to acquiring Versace for €1.5bn (£1.2bn), the FT has reported.
According to sources briefed on the discussions, after months of talking between Prada and Capri, which owns brands including Michael Kors and Jimmy Choo, an agreement could come “within weeks”.
The talks have been prolonged both by Capri’s initial asking price of €3bn (£2.4bn) for Milan-based Versace and the interest of other potential buyers.
Capri, which has been looking to sell Versace for some time, initially purchased the luxury brand founded by the late Gianni Versace, for about €1.85bn (£1.5bn) in 2018.
The FT said that the plan to sell accelerated last year when Capri called off a merger with rival Tapestry, which owns Coach and other affordable luxury brands, after a US judge in October blocked the $8.5bn (£6.6bn) tie-up over antitrust concerns.
Prada is Italy’s largest luxury fashion group and its financial performance has remained strong despite a sector slowdown, partly due to its booming Miu Miu brand. As well as Miu Miu and its mainline brand, Prada also owns Church’s, the shoe label founded in the UK.