Prada agrees to buy fashion rival versace

rada struck a $1.375 billion deal to buy smaller rival Versace from Capri Holdings on Thursday, including its debt, in a move that unites two of the biggest names in Italian fashion.

Prada is seeking to expand, having defied a slowdown in luxury demand, while Versace has been operating at a loss in the last few quarters. The merger strengthens Italy’s hand in a luxury industry led by French conglomerates, the biggest being Louis Vuitton owner LVMH.

The deal follows the announcement on March 13 that Donatella Versace was stepping down as the chief creative officer of the brand founded by her late brother Gianni.

We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic,” said Prada Chairman Patrizio Bertelli.

“At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships,” added Bertelli, husband of Prada designer Miuccia Prada. The couple are leading shareholders in the company.

Donatella Versace, whose family sold the business seven years ago, praised the new partnership. “Gianni and I have always had a huge admiration for Miuccia, Patrizio and their family,” she said.

“I am honoured to have the brand in the hands of such a trusted Italian family business and I am ready to support this new era for the brand in any way that I can,” she added.