Prada Nears Acquisition of Versace, Boosting Capri Holdings Stock
Prada is advancing towards finalizing its acquisition of the iconic Versace brand from Capri Holdings, signaling a major shift in the luxury fashion landscape.
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Highlights
- Prada is reportedly close to completing the purchase of Versace from Capri Holdings Limited.
- Bloomberg reveals Prada’s agreement to pay around 1.5 billion euros ($1.6 billion) for the renowned luxury fashion house founded in 1978.
- This development has positively influenced Capri Holdings Limited’s stock, despite a 50% decline over the previous year.
Capri Holdings Limited (CPRI) shares surged approximately 7% on Monday following reports that Prada is nearing the acquisition of Capri’s Versace brand.
According to Bloomberg, Prada has committed to a purchase price close to 1.5 billion euros ($1.6 billion), a slight decrease from Capri’s 2018 acquisition cost of roughly 1.8 billion euros ($1.9 billion).
Sources familiar with the negotiations indicate the deal could be finalized within the month, although terms and timing remain subject to change. Due diligence has reportedly uncovered no significant risks.
The acquisition of Versace, established by the late Gianni Versace in 1978, is expected to strengthen Prada’s position against major luxury competitors like LVMH and Kering SA.
Investopedia has contacted both Capri Holdings and Prada for official statements.
Despite the recent stock uptick, Capri Holdings Limited shares have experienced a roughly 50% drop over the past year, exacerbated by a failed merger attempt with Tapestry (Coach’s parent company) in October.
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