By Gloria Nosa
Prada has confirmed a groundbreaking deal to acquire its rival, the renowned Italian fashion brand Versace, from Capri Holdings for $1.375 billion, including debt obligations.
Announced on Thursday, April 10, this move signifies a major consolidation in Italy’s luxury fashion sector and strengthens Prada’s position in a market historically dominated by French luxury conglomerates.
The acquisition arrives at a time of contrasting fortunes for the two brands. While Prada has managed to maintain steady growth despite recent slowdowns in luxury demand, Versace has faced financial challenges. This merger is expected to revitalize Versace, giving it a fresh direction under the leadership of one of Italy’s most influential luxury players.
The deal follows the March announcement that Donatella Versace would step down as the brand’s chief creative officer, marking the end of an era since the brand’s founding by her late brother, Gianni Versace. This transition opens the door for a new chapter in the brand’s story.
Prada Chairman Patrizio Bertelli expressed confidence in preserving Versace’s legacy while infusing it with a fresh vision. He emphasized that Prada’s extensive experience, strategic investments, and strong industry connections would provide Versace with a solid foundation for future growth. Bertelli and his wife, Miuccia Prada, the iconic designer, are the primary shareholders of Prada.
The acquisition price is notably lower than the $2.15 billion that Capri Holdings, formerly known as Michael Kors, paid for Versace in 2018. At that time, Capri purchased the brand from the Versace family and private equity firm Blackstone.
Prada’s minimalist design philosophy will now be complemented by Versace’s bold, baroque style, expanding the brand’s appeal to new consumer groups.
“Versace holds enormous potential, and while the journey ahead will require patience and careful execution, we are committed to its success,” said Prada CEO Andrea Guerra, signaling a thoughtful and strategic approach to reinvigorating the brand.
This acquisition occurs during a time of global market uncertainty, as several planned mergers and IPOs have recently been postponed due to volatility and concerns about potential recessions exacerbated by new U.S. tariffs.
Despite Prada’s historically cautious approach to acquisitions—avoiding major deals following strategic missteps in the 1990s, such as the purchases of Helmut Lang and Jil Sander—this move signals a bold return to dealmaking that could reshape the European luxury fashion landscape.
