Prada Buys Versace for $1.83 Billion

Prada agreed to buy Versace for about US$1.38 billion (S$1.83 billion) in cash, strengthening its position as Italy's largest fashion group by adding one of the luxury industry's best-known brands.

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MILAN -

The Milan-based company, controlled by billionaire designer Miuccia Prada and her husband Patrizio Bertelli, is buying Versace from global fashion group Capri Holdings, which paid €1.8 billion (S$2.7 billion) for the brand in 2018.

The purchase, the largest in Prada's 112-year history, returns Versace to Italian ownership and could put the company in a better position to compete with bigger luxury rivals such as LVMH and Kering. The deal also gives Versace a shot at the turnaround Capri has not been able to deliver.

"Versace is a well-known brand and should be complementary to Prada," said Mr Luca Solca, an analyst at research firm Bernstein. Still, the label "requires huge investments".

The agreement moved ahead despite global market turmoil triggered by United States President Donald Trump's tariff offensive.

Prada has negotiated for months to buy the fashion house founded by late designer Gianni Versace in the 1970s and known for its flashy, ready-to-wear designs.