Prada Group Acquires Versace for $1.4 Billion, Appoints Lorenzo Bertelli as Executive Chairman
Prada Group acquired Versace for nearly $1.4 billion. Prada heir Lorenzo Bertelli will lead as executive chairman, aiming to revitalize the iconic fashion brand.
Overview
The Prada Group has completed its acquisition of fashion rival Versace for nearly $1.4 billion, following the obtainment of all necessary regulatory approvals.
Lorenzo Bertelli, heir to the Prada fashion empire, is set to assume the role of executive chairman at Versace, guiding the brand's future direction.
The acquisition aims to revitalize Versace's fortunes, as its previous owner, Capri Holdings, struggled to position the brand in the 'quiet luxury' market.
Versace is also undergoing a creative relaunch under new designer Dario Vitale, coinciding with the Prada Group's investment and strategic leadership changes.
Prada Group, reporting a 17% revenue increase to 5.4 billion euros last year, anticipates Versace will contribute 13% to its pro-forma revenues.
Analysis
Center-leaning sources cover the Prada-Versace acquisition neutrally, focusing on factual reporting of the business transaction. They detail the deal's value, the companies involved, and the strategic rationale without employing loaded language or biased emphasis. The coverage provides context on Versace's past performance and Prada's future plans, maintaining an objective tone throughout.
Sources (4)
FAQ
Capri Holdings sold Versace to Prada Group as Versace struggled to maintain strong performance in the post-pandemic luxury market, particularly in the 'quiet luxury' segment. The sale allows Capri to focus on its other brands while Prada Group leverages Versace's heritage and growth potential.
Versace is undergoing a creative relaunch under new designer Dario Vitale, while Prada Group aims to preserve Versace's unique creative DNA and bold aesthetic, leveraging its own operational strengths and supply chain.
Versace is expected to contribute 13% to Prada Group's pro-forma revenues, with Prada at 64% and Miu Miu at 22%. The group reported a 17% revenue increase to 5.4 billion euros last year.
Lorenzo Bertelli, Prada heir and group marketing director, will serve as executive chairman of Versace, overseeing its strategic direction and revitalization while continuing his roles in marketing and sustainability for the Prada Group.
Versace will be incorporated into Prada Group's Italian manufacturing system, leveraging its existing supply chain, retail network, and global capabilities to enhance efficiency and growth.
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