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Prada Seizes Versace In $1.4 Billion Power Play

by News Editor

April 11, 2025

Prada has secured a $1.38 billion deal to acquire Versace from Capri Holdings, uniting two of Italy’s most iconic fashion houses. The move positions Prada for accelerated growth while offering a much-needed lifeline to Versace, which has struggled with losses in recent quarters, according to Reuters.

Key Takeaways

Strategic Expansion: Prada is capitalizing on its resilience amid a luxury market slowdown, while Versace’s financial struggles made it an opportune target.
Brand Synergy: Versace’s bold, baroque aesthetic will complement Prada’s minimalist heritage, broadening its appeal.
Italian Power Move: The acquisition strengthens Italy’s presence in a luxury landscape dominated by French giants, led by LVMH.
Market Risks: Prada and Capri pushed forward despite uncertainty over U.S. tariffs and economic volatility.
Capri’s Shift in Focus: The U.S. company reportedly pulled back on Versace investments to prioritize its core Michael Kors brand.
Prada’s Growth Strategy: Prada aims to fuel expansion as its existing brands, including Miu Miu, mature.

Prada CEO Andrea Guerra emphasized that the acquisition is a long-term strategic play focused on revenue growth rather than cost-cutting. “We will provide Versace with a strong platform, reinforced by years of ongoing investment and rooted in long-term relationships,” said Prada President Patrizio Bertelli.

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Behind The Deal

Prada’s purchase price—factoring in Versace’s debt—represents a significant markdown from the $2.15 billion Capri paid in 2018 when it acquired the brand from the Versace family and Blackstone. Prada first explored the deal last year after Capri’s planned sale to Tapestry (owner of Coach and Kate Spade) stalled due to antitrust scrutiny, sources said.

The $1.4 billion valuation remained steady through negotiations, and Prada will finance the acquisition with €1.5 billion in new debt. The deal is set to close in the second half of this year.

What’s Next

The acquisition signals a strategic shift under Guerra, who took over from Patrizio Bertelli and Miuccia Prada two years ago. It also underscores the rising influence of their son, Lorenzo Bertelli, widely seen as Prada’s future CEO.

Founded in 1913 as a Milanese leather goods store, Prada has evolved into a global powerhouse, expanding aggressively under Miuccia Prada and Bertelli. Meanwhile, Versace—best known for its Medusa-head logo—remains one of fashion’s most recognizable names, shaped by Donatella Versace after her brother Gianni’s tragic murder in 1997.

With Prada’s backing, Versace is poised for reinvention. Whether it will reclaim its former glory remains to be seen—but one thing is certain: Italian luxury just got a whole lot stronger.

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Call for Reform: Cyprus Faces New Challenges with Emerging Tobacco Products

by News Editor

May 31, 2025

In the face of a burgeoning variety of tobacco products, existing smoking laws in Cyprus are struggling to keep pace, as highlighted by Christos Minas, the president of the Cyprus National Addictions Authority (AAEK). On World No-Tobacco Day, there was a push for legislative reforms to comprehensively cover all tobacco forms, including non-nicotine alternatives.

Addressing Rising Trends with Effective Policies

Minas emphasized the surge in popularity of e-cigarettes and flavored products, particularly among the youth. The proposed legal updates aim to enhance enforcement efficiency against these emerging trends.

In collaboration with the World Health Organization’s (WHO) framework, the AAEK has established the first set of national guidelines for smoking cessation in Cyprus, crafting prevention and treatment strategies based on robust scientific evidence.

Educating Youth and Public Awareness Initiatives

Efforts are underway to raise awareness, with informative materials distributed to secondary schools across Cyprus. A public event in Nicosia highlighted the state’s ongoing commitment, providing carbon monoxide testing and expert advice on new tobacco products.

Recent data from the Cyprus general population survey 2023 indicates that 38% of smokers have used e-cigarettes recently, and the smoking initiation age remains at 18.

A Glimpse into Youth Smoking Patterns

According to the latest European school survey, 14% of Cypriot students aged 15-16 reported smoking traditional cigarettes last month. Although this rate is declining, Cyprus still ranks high in Europe for e-cigarette and hookah use among students.

The concern is global, with WHO reports showing over 37 million children aged 13-15 engage in tobacco use, driven by aggressive marketing in loosely regulated environments.

The urgency for reform is clear: before these trends solidify, proactive measures are necessary to protect future generations from potentially hazardous habits.