Fashion house Prada acquires Versace brand: deal value named.

Prada has announced the acquisition of the fashion brand Versace for $1.375 billion. Despite a decline in demand for luxury goods, Prada continues to expand. This will help strengthen the position of the Italian fashion industry, which is currently mainly controlled by French companies. The President of Prada stated: 'We aim to continue the legacy of Versace, celebrating and reinterpreting its bold and timeless aesthetic.' The price Prada paid for Versace is significantly lower than what Capri spent to acquire the brand in 2018. The deal was made under the conditions of global markets and fears of a global recession. However, the CEO of Prada emphasized Versace's potential and the need for disciplined execution of the brand’s development plan. Additionally, Prada previously acquired other brands, such as Helmut Lang and Jil Sander, but these deals turned out to be strategic mistakes. Now the company has made a significant purchase again, acquiring Versace. Prada was founded in 1913 and dealt in suitcases and bags. Over Time, the company expanded its operations and became an international brand thanks to designer Miuccia Prada, the granddaughter of the founder. Versace, established in 1978 by Gianni Versace, is a well-known brand of clothing and accessories. After the founder's death, the business passed to his sister Donatella. In 2018, the brand was sold to the American company Michael Kors. The acquisition of Versace demonstrates Prada's readiness to expand even in challenging market conditions. This deal underscores the importance of Italy as a player in the fashion industry and will be the first step in building a strategic partnership for both companies.