Prada Evaluates Acquisition of Versace
Milan-based luxury fashion house Prada SpA is considering a potential bid for Versace, the Italian brand owned by Capri Holdings Ltd.
Prada has initiated a comprehensive review of Versace after gaining access to its financial and sales data. The company is evaluating the feasibility of an offer, though no formal proposal is guaranteed.
A Prada acquisition would mark the return of Versace to Italian ownership. In recent years, global conglomerates have acquired several prominent Italian fashion brands, including LVMH's purchase of Fendi, Loro Piana, and a stake in Moncler.
Family-owned Prada has performed well amidst the recent downturn in the luxury sector. Its sales surged in Q3 2022, driven by the popularity of its Miu Miu brand.
Capri, which also owns Michael Kors, has hired Barclays to explore options for its controlled companies following the failed $8.5 billion merger with Tapestry Inc.
According to Italian media reports and market sources, Prada has signed an exclusive agreement to conduct due diligence on Versace.