ROME - Prada is close to reaching an agreement with Capri Holding for the acquisition of the Versace brand, according to Italian media. 

 An agreement would entail a deal of almost 1.5 billion euros, which could go through by the end of March. In February it wasreported that the Italian luxury group had been granted preferential access to financial data, after Capri Holdings had put the company up for sale.

 By acquiring Versace Prada would be able to create an Italian group that would ‘be able to compete alongside the big global names in the sector, such as L.V.M.H. and Kering.’  After decades of the biggest Italian brands being in foreign hands this acquisition could ‘represent a reversal of trend in the world of luxury.’

 According to French Newspaper Les Echos, the deal is already in the advanced stage and the Milanese luxury group has drawn up everything in the four weeks of exclusive negation with Capri Holding. This was denied by Prada with Miuccia Prada saying that the offer ‘is on everyone's table," when speaking of the possible acquisition immediately after the reveal of their 2025 women's collection in Milan.  

  The market expected that Prada, by the end of 2024, would have around 450 million in cash, which could be spent on this acquisition. There are some doubts about the cost of the acquisition, given that in 2018 Capri Holdings had purchased the brand from the Versace family and Blackstone for 1.8 billion euros. Donatella Versace, 69, has been in charge of the artistic direction of the brand and there is talk that it is in serious need of a relaunch. There have been some previous attempts to sell the Italian company by Capri Holdings, who own both Michael Kors and Jimmy Choo, especially since the U.S. Antitrust prevented a merger of the group with Tapestry.

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