The $1.4 billion acquisition of Versace marks a significant change in the industry as the Prada Group enters new territory by adding a designer label with a bold and flamboyant brand identity to its portfolio. The path leading to the deal has been complex. Capri Holdings, previously Michael Kors Holdings, initially intended to create a luxury empire through three separate brands: Versace, Jimmy Choo and Michael Kors. The company tried to sell its entire business through a piecemeal strategy after regulatory challenges and internal issues blocked a previous sale attempt by putting Versace and Jimmy Choo on the market during the last year of the previous year.
Prada acquired Versace following intense negotiations during worldwide market instability, which led to its victory in the acquisition process. In this episode of “From the Newsroom,” WWD’s Evan Clark, deputy managing editor, and Luisa Zargani, bureau chief, Milan, discuss the impetus behind the deal and how it is helping to reshape the luxury market.
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