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Prada SpA is nearing final approval to acquire struggling luxury brand Versace for around €1.25 billion ($1.4 billion) from Capri Holdings Ltd. despite the tariff-induced volatility, according to people familiar with the matter.
The board of the Milanese company, controlled by billionaire designer Miuccia Prada and her husband Patrizio Bertelli, is meeting Wednesday to sign off on the transaction, said the people, who asked not to be identified because talks are private.
Prada and Capri have been discussing a small reduction in the original price of nearly €1.5 billion due to Versace’s turnaround needs and tariffs, said the people, noting that they are on track to reach an agreement this week. The two companies are finalising a few remaining technicalities and the formal approval is still outstanding, the people said.
Representatives for Prada and Capri declined to comment.
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Prada has negotiated for months to buy the fashion house founded by Gianni Versace in the 1970s and known for its flashy, ready-to-wear designs. The Financial Times reported earlier Wednesday that Prada is closing in on the purchase after negotiating a discount of more than $200 million due to the impact of the trade war. The Wall Street Journal reported separately that talks to acquire Versace are at risk of collapsing at the eleventh hour with financial markets in historic turmoil.
Capri paid about €1.8 billion for the Versace brand in 2018. The purchase would return Versace to Italian ownership and put Prada in a better position to compete with bigger global luxury rivals such as LVMH and Kering SA.
By Luca Casiraghi, Tommaso Ebhardt, and Dinesh Nair
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