Prada is close to the final approval to acquire The Luxury Versace brand for around US $ 1.4 billion to Capri Holdings despite the volatility induced by tariffs, according to people familiar with the matter.
The Board of Directors of the Milanese company, controlled by the multimillionaire designer Miuccia Prada and her husband Patrizio Bertelli, It will meet Wednesday to approve the transaction, people said, they asked not to be identified because the conversations are private.
Prada and Capri have been discussing a small reduction in the original price of almost US $ 1,648 million due to the needs of changing Versace and tariffs, People said, noting that they are on their way to reaching an agreement this week. The two companies are finalizing some pending technical aspects and the formal approval is still pending, people said.
The representatives of Prada and Capri declined to comment.
Prada has been negotiating the purchase of the fashion house founded by Gianni Versace in the 1970s and known for its striking prêt-à-porter designs. The Financial Times reported early Wednesday that Prada is closing the purchase after negotiating a more discount of US $ 200 million due to the impact of the commercial war. The Wall Street Journal reported separately that conversations to acquire Versace run the risk of failing at the last moment, with financial markets in historical agitation.
Capri paid about US $ 1,978 million for the Versace brand in 2018. The purchase would return Versace to Italian hands and place Prada in a better position to compete with great world rivals of luxury such as LVMH and Kering SA.
