Prada may consider more deals after Versace

Prada’s Lorenzo Bertelli said the Italian luxury group could consider further acquisitions after completing its purchase of Versace and did not rule out a potential interest in Giorgio Armani, though he said there have been “no contacts of any kind” so far.

Bertelli’s comments come as Prada prepares to finalize its $1.4 billion takeover of smaller Italian fashion house Versace, agreed in April, marking a strategic shift for the family-controlled group after years of steering clear of major dealmaking.

“If opportunities arise, we will look at them,” Bertelli, currently Prada’s chief marketing officer and set to become CEO at a later stage, told Reuters in an interview at the company’s Milan headquarters.

Asked about a possible interest in Armani, Bertelli, 37, did not rule it out but said Prada’s current focus was on Versace, which has struggled to return to its past glory.

“There is nothing else on the table today,” said the son of designer Miuccia Prada and her husband Patrizio Bertelli, who is Prada’s chairman.

Armani’s future has been in the spotlight since founder Giorgio Armani died in September. Under his will, heirs must gradually sell the fashion house or seek a listing, starting with a 15% stake within 12 to 18 months of his death.

BERTELLI EXPANDS ROLE WITH VERSACE

Lorenzo Bertelli, who is also head of corporate social responsibility and strongly supported the deal, said he is set to become executive chairman of Versace once the acquisition is completed, expanding his role within the Prada group.

He said the Versace acquisition, prompted by the brand’s strong global recognition and a reasonable price tag, was a shared family decision and part of a broader succession plan.

Bertelli told Reuters he worked closely with Prada CEO Andrea Guerra in the months leading up to the agreement with Versace-owner Capri Holdings, which sold the brand after a planned merger with Tapestry failed.

“This is a deal that Andrea and I carried out operationally between January and March,” said Bertelli, whom several industry players described to Reuters as the real driving force behind the Versace acquisition.

“It needs to be viewed in the context of the succession…Since I represent the future of the company, it is normal that if I hadn’t wanted to do it, we wouldn’t have done it.”

Prada, Italy’s largest luxury group by revenue, is confident that it will be able to turn around Versace but it is not in a hurry.

“We are neither in a hurry nor anxious…It will take time, but we are confident in our ability to bring Versace back to success,” he said.

Designer Miuccia Prada and her husband Patrizio Bertelli control the $15 billion group, which is listed in Hong Kong. Lorenzo, the elder of two sons, joined the company after a career in rally racing and is widely seen as the heir apparent.

Bertelli confirmed that he will take on the role of Prada group CEO but only “when the time is right.”

“Things are working well as they are, and there is no expiry date for (the current) organisational model,” he said.

Lorenzo Bertelli said adding a listing in Milan, which Prada has explored before, is not on the agenda for now: “There is no plan in the short term.”

Prada, founded in Milan in 1913, has shown resilience amid the current luxury sector slowdown, buoyed by strong growth at its second major brand, Miu Miu.

The group, which holds two key licensing agreements for beauty and eyewear with L’Oréal and EssilorLuxottica, said it is happy with the licences.

Prada has had “exploratory talks” with EssilorLuxottica over the potential development of smart glasses under its brands, but no decision has been made, Lorenzo Bertelli also said.