Core Viewpoint - The article expresses optimism about Prada S.p.A. due to its strong brand portfolio, including Miu Miu and Versace, and its attractive valuation [1]. Group 1: Company Analysis - Prada S.p.A. is highlighted for its potential as a value investment, focusing on identifying undervalued stocks with growth potential [1]. - The company is noted for its diverse brand offerings, which contribute to its market strength and appeal [1]. Group 2: Market Context - The analysis reflects a broader trend in the luxury goods market, where brands like Prada are positioned to capitalize on consumer demand [1].

Group 1 - Prada Group has officially acquired Versace for €1.25 billion, approximately ¥10.3 billion [1] - Both Prada and Versace are headquartered in Milan, Italy [1] - Versace was founded by fashion designer Gianni Versace and has a history of 47 years [1] Group 2 - In 2018, Capri Holdings acquired Versace from the Versace family for around €2 billion [1] - Versace's performance has been average in recent years, contributing about 20% to Capri Holdings' revenue in 2024 [1]

Core Viewpoint - Prada Group has completed the acquisition of Versace from Capri Holdings for €1.25 billion (approximately ¥10.3 billion), marking the largest capital operation in its 112-year history [2][4] Group 1: Acquisition Details - The acquisition price of €1.25 billion is significantly lower than the initial asking price of €2 billion and the negotiated price of €1.5 billion, reflecting market conditions and negotiation dynamics [4][5] - The deal is an all-cash transaction, valuing Versace at 1.33 times its projected revenue of $1.03 billion for the fiscal year 2024, which is below the luxury industry average of 3 to 5 times [5] - Following the acquisition, Versace will operate as a wholly-owned subsidiary of Prada Group, enhancing its portfolio in high-end leather goods, footwear, and fragrances [5][9] Group 2: Management and Strategic Direction - Lorenzo Bertelli, the heir of the Prada family, has been appointed as the CEO of the restructured Versace, indicating a strong family influence in the management [7] - Bertelli emphasized that the acquisition was made at a reasonable price for a strong brand, highlighting Versace's unique aesthetic that complements Prada's existing brands without overlap [7] - Prada Group aims to integrate Versace into its industrial and manufacturing systems, positioning it as a key pillar for future business expansion [8][9] Group 3: Financial Performance and Growth Strategy - Prada Group reported a 9% year-on-year revenue increase to €4.07 billion for the first three quarters, with Miu Miu showing a 41.4% growth [7] - The CEO, Andrea Guerra, reaffirmed the goal to increase revenue from €4.2 billion in 2023 to €8 billion, focusing on sustainable growth without sacrificing long-term objectives [8] - The addition of Versace is expected to provide new growth momentum for the group, which is one of the few winners in the luxury sector amid a global demand slowdown [12]

Group 1 - Prada Group has completed the acquisition of Versace for €1.25 billion (approximately ¥10.278 billion) [1] - As part of the financing arrangement for Versace, Prada has established a €1.5 billion financing agreement, which includes €1 billion in term loan financing and up to €500 million in transitional term loan financing [1] - The acquisition price of $1.375 billion represents a nearly one-third decrease from the €2 billion paid by Capri Holdings in 2018, indicating a strategic opportunity for Prada to acquire Versace during a low point [1] Group 2 - Both brands are headquartered in Milan, and the integration is seen as a deep aggregation of Italian luxury manufacturing genes [2] - Prada's chairman, Patrizio Bertelli, stated that Versace's bold aesthetics will bring a new dimension to the company, emphasizing the intention to maintain its tradition rather than alter its essence [2] - Versace's recent performance has been underwhelming, contributing approximately 20% to Capri Holdings' revenue for 2024, but Prada believes there is significant growth potential to be developed [2] Group 3 - Following the acquisition, Versace is expected to account for 13% of Prada Group's total revenue, while Prada and Miu Miu will account for 64% and 22%, respectively [2] - Prada Group reported revenue of €5.4 billion last year, reflecting a 17% year-on-year growth [2] - The luxury goods industry is facing a slowdown, with McKinsey predicting that global luxury sales growth will decline to 2%-4% annually from 2025 to 2027, making differentiated competition crucial [3]

Core Viewpoint - Prada Group has completed the acquisition of Italian luxury brand Versace for €1.25 billion (approximately ¥10.278 billion) [2] Financing Arrangement - As part of the financing for the Versace acquisition, Prada Group has entered into a €1.5 billion financing agreement, which includes €1 billion in term loan financing and up to €500 million in transitional term loan financing [2] - The drawdown of the Versace financing agreement is contingent upon meeting several conditions related to the completion of the transaction, with €1 billion and €300 million already drawn down [2] - Additionally, Prada Group has established a €200 million bilateral term loan, which has also been drawn down alongside the completion of the transaction [2] Integration Plans - Prada Group has begun preparations to integrate Versace into its Italian manufacturing system [2] - The Scandicci leather factory under Prada Group will soon commence the production of Versace bags [2]

Group 1 - Prada Group has officially acquired its competitor Versace for a price of €1.25 billion [1] - The acquisition has been completed after all regulatory checks were finalized [1] - Both luxury brands are headquartered in Milan, Italy [1] Group 2 - Versace was founded by fashion designer Gianni Versace and has a history of 47 years [1]

Core Viewpoint - The acquisition of Versace by Prada has been officially completed for €1.25 billion, with expectations of significant growth potential for the Versace brand under the Prada Group's management [1] Group 1: Acquisition Details - Prada Group announced the completion of the acquisition of Versace for €1.25 billion, following all regulatory checks [1] - Lorenzo Bertelli, the current Chief Marketing Officer and Sustainability Director of Prada, will become the Executive Chairman of Versace [1] - The acquisition is expected to enhance Prada's portfolio, with Versace projected to contribute 13% to the total revenue of the Prada Group post-acquisition [1] Group 2: Financial Performance - Prada Group reported a revenue of €5.4 billion last year, marking a 17% year-on-year increase [1] - Versace's performance has been underwhelming in recent years, contributing approximately 20% to Capri Holdings' revenue for 2024 [1] - The Prada Group has invested €60 million in its supply chain this year, including the establishment of new factories in Italy [1] Group 3: Strategic Integration - Prada Group plans to integrate Versace into its Italian production system, leveraging similar expertise across brands [1] - The production facility in Scandicci, which currently produces for Prada and Miu Miu, is expected to soon include Versace products [1]

Core Insights - Prada announced the completion of the acquisition of the Versace Group, with the transaction finalized on December 2, 2025 [1] Group 1 - The announcement was made in a disclosure regarding the acquisition transaction dated April 10, 2025 [1] - The board expressed satisfaction that all conditions of the share purchase agreement have been met [1] - The acquisition is a significant strategic move for the company, enhancing its luxury brand portfolio [1]

Core Viewpoint - Prada has successfully completed the acquisition of the Versace Group, with all conditions of the share purchase agreement met as of December 2, 2025 [1] Group 1 - The acquisition of Versace is a strategic move for Prada to enhance its luxury brand portfolio [1] - The completion of the transaction marks a significant milestone for Prada in expanding its market presence [1]

Group 1 - Prada (01913) announced that all conditions under the share purchase agreement have been met [1] - The transaction was completed on December 2, 2025 [1]