MILAN, April 10 (Reuters) - Prada (1913.F), opens new tab struck a deal on Thursday to buy smaller rival Versace from Capri Holdings (CPRI.N), opens new tab for $1.375 billion, which includes its debt, in a move that unites two of the biggest names in Italian fashion.
Prada is seeking to expand, having defied a slowdown in luxury demand, while Versace has been operating at a loss. The merger strengthens Italy’s hand in a luxury industry led by French conglomerates.
The deal follows the announcement on March 13 that Donatella Versace was stepping down as the chief creative officer of the brand founded by her late brother Gianni.
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