ROME: Versace has been taken over by rival Prada, in a deal that unites two of the biggest names in the world of luxury fashion, reported German news agency dpa.
The move was announced on Thursday in Milan by the Prada Group, which also owns other luxury brands such as Miu Miu and Church’s.
In recent years, Versace – named after the company’s founder Gianni Versace – has been under the umbrella of the US-based Capri Holdings. The purchase price was reported to be €1.25 billion (US$1.4 billion.
There had been speculation about the takeover for months. According to the Corriere della Sera newspaper, however, there were several obstacles that had to be overcome before the two Italian houses could team up.
The punitive tariffs imposed by US President Donald Trump on other countries – including Italy – were also a cause for concern, it was reported.
The purchase price for Versace, which was founded in 1978, is now lower than the sum of €1.5 billion that was originally offered.
Prada was founded in 1913. Capri Holdings still owns brands such as Michael Kors and Jimmy Choo.
Both Prada and Versace are amongst the biggest names in Italian fashion.
Company founder Gianni Versace was murdered in the United States in 1997. A month ago, his sister Donatella Versace resigned from her post as creative director after almost three decades in the role. Dario Vitale, who previously worked for Miu Miu, is the new creative director.
