Luxury Fashion Firm Prada Enters Advanced Talks to Buy Versace
Luxury fashion firm Prada has reportedly entered advanced talks with GVC Group to acquire Italian fashion house Versace for approximately €1.5 billion, according to sources close to the matter. If successful, the deal would mark a significant consolidation in the global luxury market.
Versace, known for its iconic Medusa logo and glamorous designs, has struggled to regain its footing since its previous owner, Michael Kors Group, acquired it in 2018. The acquisition was reportedly costly, with Versace’s debt reaching €500 million at one point.
Prada, on the other hand, has enjoyed strong growth in recent years, driven by the success of its iconic nylon bags and stylish clothing lines. The Italian luxury firm has also made several strategic acquisitions to expand its portfolio.
While details of the proposed deal are scarce, insiders say that Prada is expected to make a formal offer soon, pending due diligence. The acquisition would mark a significant expansion into Italy’s lucrative fashion market for Prada, which currently operates primarily in Asia and Europe.
Source: https://www.ft.com/content/9a9c7b44-60f5-4db3-9667-08f3db94bec4