Prada Aims Acquisition Of Fashion Group Versace: Report

Italy’s Prada is among the potential suitors which is examining the acquisition of the fashion group, after US Capri Holdings put up Versace for sale, according to a report by Reuters which cited daily II Sole 21 ore. The report went on to add that Prada is being advised by Citi.

The Reuters report highlighted that Coach-owner Tapestry dropped a USD 8.5 billion deal to buy Michael Kors-owned Capri in November. Upon the failure to materialise the deal to create a United States luxury conglomerate, Reuters reported that Barclays was hired by Capri to explore the strategic options which included the sale of its Jimmy Choo and Versace brands.

In November, a bigger-than-expected drop in quarterly revenue was posted by Capri which was hurt by execution missteps across brands. It was also attributed to a global slowdown in the luxury goods market. As per the media reports, Versace would attract the interest of other fashion groups as well as private equity funds.

The report added that Prada is looking at the file with Citi, adding that Citi has worked with Prada earlier as well regarding a dual listing project which was put on hold. (With Reuters Input)