Prada buys Versace in a $1.375 billion deal

Italian luxury group Prada said it has completed its purchase of Versace from Capri Holdings, which reported the deal was worth US$1.375 billion in cash, subject to adjustments.

Versace, founded in 1978 by Gianni Versace, will sit alongside Prada’s namesake label and the fast-growing Miu Miu.

Donatella Versace, sister of the late founder, noted that the closing of the deal coincided with his birthday. “Today is your day and the day Versace joins the Prada family. I am thinking of the smile you would have had on your face. I miss you, always,” she wrote on Instagram.

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Capri Holdings, which also owns Michael Kors and Jimmy Choo, said it will use the proceeds from the sale to repay most of its debt and strengthen its balance sheet.

“I would like to express my gratitude to the entire Versace team for their dedication and contributions. In particular I would like to recognize Donatella Versace, Dario Vitale and Emmanuel Gintzburger for their outstanding leadership and commitment to the brand's evolution,” said John D. Idol, the company’s chairman and CEO.