Prada Buys Versace

On Thursday, in the biggest luxury deal of the year, Prada announced it was buying Versace for 1.25 billion euros ($1.38 billion) from Capri Holdings, a beleaguered New York group that at one point styled itself as the American answer to the great fashion groups of France.The deal is a sign of faith in the continued value of Made in Italy at a time when the financial markets are in chaos because of President Trump’s whipsawing tariff policies.And it marks the end of Capri’s attempt to create an American luxury group to rival LVMH and Kering, while signaling an attempt by Prada to create an Italian competitor to the powerhouses.“It’s a bold and ambitious move by Prada,” said Robert Burke, the eponymous founder of Robert Burke Associates.

“The acquisition would position Prada to diversify its portfolio and compete on a larger global stage.”Versace will join Prada and Miu Miu, as well as Luna Rossa, the America’s Cup sailing team, and the pastry brand Marchesi as part of the Prada Group, creating a “best in class” mosaic of Italian savoir-faire.(The group also includes the footwear brands Car Shoe and Church’s.)It also gives the Prada Group’s fashion holding critical mass, adding a ready-to-wear brand with a notably different identity to those of Miu Miu and Prada — as well as one that is not dependent on the designer Miuccia Prada — to the mix.In a news release, Andrea Guerra, Prada Group’s chief executive, said the acquisition would add, “a new dimension, different and complementary,” to the Group.

“Versace has huge potential,” he added, while noting, “the journey will be long.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want al...