Prada conquers Versace, agreement signed
Group valuation of 1.25 billion
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Key points
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Prada announced that it has entered into a definitive agreement for the acquisition of 100% of Versace from Capri Holdings. The cash consideration will be based on an enterprise value ofEUR 1.25 billion and is subject to adjustment at closing.
"We are delighted to welcome Versace into the Prada Group and to begin a new chapter for a brand with which we share an unwavering commitment to creativity, product care and a strong cultural heritage. Our goal is to give continuity to the legacy of Versace, celebrating and reinterpreting its bold and timeless aesthetic; we will offer a solid platform, strengthened over the years by continuous industrial and distribution investments. Our organisation is ready and well positioned to write a new page in the history of Versace, building on the Group's values and continuing to operate with confidence and rigorous determination," said Patrizio Bertelli, Chairman and Executive Director of the Prada Group.
"The acquisition of Versace," added Andrea Guerra, Group CEO, "represents a further step in the evolutionary path of our group and adds a new, different and complementary dimension. The group's infrastructure is strong, we have verticalised our brand organisations, and strengthened our routines and processes. We feel ready to open this new chapter. Versace has enormous potential. the road will be very long and will require patience and discipline in execution. The evolution of a brand needs time and continuous care. I want to thank Capri Holdings for preserving and further enriching the heritage of this magnificent brand. Despite the period of great uncertainty, we look to the future with confidence, projected on a long-term strategic vision".
L’attesa
In anticipation of the announcement, the Prada stock rallied in Hong Kong, ripping up 9%, before settling at +5.7%.
Capri, the holding company that holds the Versace brand in its portfolio, closed yesterday on the Wall Street stock exchange up 31% to EUR 16.36, betting on the sale for which exclusive negotiations have been underway for a month.
