A global luxury fashion giant agreed to strut and purchase its rival for over $1 billion.

Prada has agreed to purchase rival luxury brand Versace from Capri Holdings for $1.38 billion Thursday morning, according to a company press release. The deal was reportedly stuck in limbo and on the verge of collapse due to the market spontaneity caused by President Donald Trump’s tariffs.

Versace has operated at a loss with the recent decline in demand for luxury fashion. Prada will inherit Versace’s debt alongside the acquisition.

Prada Chairman Patrizio Bertelli told Reuters reporters that the purchase aligns with their plans to expand.

“We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic,” said Bertelli. “At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”

Capri Holdings originally bought Versace from the Versace family and Blackstone for $2.15 billion in 2018.

In Capri Holdings press release, company CEO and Chairman John D. Idol said he’s confident the purchase will strengthen the Versace brand.

“Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship,” said Idol. “Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”