Nan Fang Du Shi Bao·2025-12-03 14:23Core 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]