Report: PRADA is considering acquiring Versace
In addition to PRADA, there may be other potential buyers interested in Versace, such as other fashion groups and private equity funds. However, analysts point out that in the context of an overall downturn in the luxury goods industry, valuation issues may become a key obstacle to the transaction
On January 10th, according to Italy's "24 Hours Sun," Prada may be interested in acquiring Versace, is assessing the feasibility of this action, and has already been collaborating with professional advisors such as Citibank to study this potential deal. In addition to Prada, there may be other potential buyers interested in Versace, such as other fashion groups and private equity funds.
The report also stated that since mid-December, there have been rumors in the market that Versace's parent company Capri Holdings intends to sell the brand, possibly even along with Jimmy Choo. Currently, Capri Holdings has commissioned Barclays Bank to find potential buyers.
Previously, in August 2023, Capri Holdings agreed to sell Versace to competitor Tapestry for $8.5 billion, but a U.S. federal judge ruled that the transaction violated competition regulations, leading to the deal's termination in November 2023.
In November of last year, Capri Holdings reported a significant decline in quarterly revenue, exceeding market expectations. Analysts believe that the performance decline was mainly influenced by mismanagement of its brands and a slowdown in global luxury goods demand.
Regarding this potential acquisition, analysts pointed out that in the overall sluggish luxury goods industry, valuation issues could become a key obstacle to the transaction.
It is worth mentioning that in May of last year, Prada Group CEO Andrea Guerra denied large-scale acquisition plans in an interview, stating that Prada had no intention of acquiring competitors such as Armani or Versace.
As of the time of publication, Capri Holdings' U.S. stock rose before quickly falling.
