Prada is reportedly evaluating the acquisition of Versace, collaborating with advisors like Citibank to explore this potential deal. Other potential buyers, such as fashion groups and private equity funds, might also be interested. However, analysts highlight that valuation issues could pose significant obstacles due to the luxury industry's current downturn.
Since mid-December, rumors have circulated that Capri Holdings, Versace's parent company, is looking to sell the brand, possibly alongside Jimmy Choo. Capri Holdings has engaged Barclays to identify potential buyers. Previously, Capri Holdings had agreed to sell Versace to Tapestry for $8.5 billion in August 2023, but this deal was terminated in November 2023 after a U.S. federal judge ruled it violated competition regulations.
In November, Capri Holdings reported a significant decline in quarterly revenue, exceeding market expectations. Analysts attribute this decline to mismanagement of the brand and a global slowdown in luxury demand.
It's noteworthy that in May last year, Prada's CEO, Andrea Guerra, denied plans for major acquisitions, including competitors like Armani or Versace, during an interview.
As of the latest reports, Capri Holdings' stock showed initial gains in pre-market trading but quickly declined. Investors are advised to exercise caution, as the market carries inherent risks. This article does not provide personalized investment advice or consider individual financial circumstances.
