Group Prada It completed the purchase of its competitor Versace For approximately 1.4 billion US dollars (1.25 billion euros) so far owned by the Americans Capri Holdings.
Thus, the union of Prada and Versace will lead to the emergence of a Luxury fashion giant In Europe, with an expected income of approx 6.6 billion US dollars. In this way, the group will be able to compete with other players on the market, especially French conglomerates, e.g Louis Vuitton and keyring.
As Capri Holding Company announced in a press release, The company will allocate the money it received to pay off debts.
“With the successful completion of the sale of Versace, We plan to use the proceeds to repay most of our debtwhich will significantly strengthen our balance sheet. As a result, this transaction will significantly reduce our leverage ratio It will provide us with greater financial flexibility to invest in our growth and return capital to shareholders in the future“, He said john d. IdolPresident and CEO of the company.
Capri Holdings – also owner Jimmy Choo and Michael Kors– It acquired Versace in 2018 for $2.1 billion. at that time, 80% of the brand was in the hands of the founding family, while the remaining 20% was part of the American fund Black Rock.
The goal of the American group was Versace’s sales recovered, seriously affected Due to the luxury market crisis that began during the pandemic and failed to recover in the following years.
“We remain focused on executing on our strategic initiatives at Michael Kors and Jimmy Choo to maximize the potential of our iconic brands. Looking to the future, We believe we are on track to stabilize our business this year while laying a solid foundation for a return to growth in fiscal 2027.“The idol was mentioned in the statement.
now, Lorenzo Bertellithe eldest son of the designer Miuccia Prada And industrial Patrizio Bertelli, He will take over as CEO of Versace He will lead the next phase of the luxury brand.
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