DexCom earnings beat by $0.03, revenue topped estimates
Investing.com -- Prada (OTC:PRDSY), the Italian luxury fashion house, announced on Thursday that it has agreed to purchase its smaller competitor, Versace, for an enterprise value of $1.375 billion. The deal, which is set to unite two prominent names in the Italian fashion industry, comes as Prada is looking to expand amidst a sluggish luxury demand.
Versace, on the other hand, has been operating at a loss. The merger is seen as a strategic move that bolsters Italy's position in the luxury industry, which is mainly dominated by French conglomerates.
Prada Chairman, Patrizio Bertelli, expressed the company's intent to carry forward Versace’s legacy by celebrating and re-interpreting its bold and timeless aesthetic. He also emphasized that Prada would provide Versace with a strong platform, backed by years of ongoing investments and rooted in long-standing relationships.
Interestingly, the amount Prada has agreed to pay for Versace is significantly less than the approximately $2.15 billion, including debt, that Capri Holdings (NYSE:CPRI) paid for the brand in 2018. Capri, formerly known as Michael Kors, had bought Versace from the Versace family and Blackstone (NYSE:BX).
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.