(Bloomberg) – Prada Spa is approaching a contract to buy Versace from Capri Holdings Ltd. After agreeing to the price of almost 1.5 billion euros ($ 1.6 billion), according to people who are familiar with these things.
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The company based in Milan and Capri could complete a contract for the Italian luxury canvas this month, people said, asking them not to identify themselves because the discussions are private. Conversations make progress after the initial depth has not found any risks, people said.
Time and evaluation could change, and discussions could still fall apart, people added. Capri, who bought Versace in 2018 for around EUR 1.8 billion, did not immediately respond to the comment requests on Sunday. Prada refused to comment.
The potential acquisition of a fashion house founded by the late designer Gianni Versace 1978 would allow Prais to create a larger Italian player to better compete with global luxury groups such as LVMH and Kering with.
The purchase would mark the turn of the trend of Italian fashion after a decade during which the domestic rivals bought domestic luxury groups – including Gucci and Valentino.
Prada appeared as one of the winners of the luxury sector due to the global fall of fashion objects top -notch. The sale increased in the third quarter last year on the back of Miu Miu, the labels of the popular with junior consumers.
The Italian company spent weeks evaluating Versace with its advisers and received an exclusive approach with its latest financial and sales data, Bloomberg News reported in February, citing people familiar with the situation.
Even with an agreement, Prada will be worth a fraction of their biggest competitors. The fashion house located in Hong Kong has a market capitalization of about 169.4 billion HK ($ 21.8 billion), after 10% of the stake from the beginning of the year. The Miuccia Prada family and her husband Patrizio Betelli control about 80% of the company.
The French LVMH conglomerate, which owns Louis Vuitton and Christian Dior, as well as a series of Italian brands, including Fendi and Loro Piana, has a market value of 347.5 billion euros. Last year, LVMH bought a share of a company controlled by Moncler Spa, an Italian manufacturer of designer outdoor clothing.
Versace reported a revenue of $ 193 million in the third quarter of the current fiscal year, which is a 15% annual fall, the statement said. During the same period, the brand operating loss spread to $ 21 million for $ 14 million.
