Prada has announced a major agreement to acquire rival Italian fashion house Versace from Capri Holdings in a deal valued at $1.375 billion, including assumed debt. The acquisition, confirmed on Thursday, April 10, marks a significant consolidation in Italy’s luxury fashion landscape and strengthens Prada’s position in a market traditionally dominated by French giants.
The deal comes amid diverging fortunes for the two brands. While Prada continues to grow despite recent slowdowns in global luxury demand, Versace has struggled financially. The acquisition gives Versace a fresh start under the stewardship of one of Italy’s most iconic fashion houses.
This move follows the March 13 announcement that Donatella Versace would step down as chief creative officer, closing a defining chapter in the brand’s history. Her departure paves the way for a new era for the label founded by her late brother, Gianni Versace.
“We aim to continue Versace’s legacy, celebrating and reinterpreting its bold and timeless aesthetic,” said Prada Chairman Patrizio Bertelli. He emphasized that Versace will benefit from Prada’s decades of strategic investment and strong industry relationships. Bertelli and his wife, legendary designer Miuccia Prada, are the company’s primary shareholders.
The deal’s value is notably lower than the $2.15 billion Capri Holdings—formerly Michael Kors—paid for Versace in 2018 when it acquired the brand from the Versace family and private equity firm Blackstone.
Bringing together Prada’s minimalist elegance and Versace’s lavish baroque style, the merger will broaden Prada’s appeal to new audiences and markets.
“Versace has huge potential. The journey will be long and will require disciplined execution and patience,” said Prada CEO Andrea Guerra, signaling a careful and strategic approach to the brand’s revival.
The acquisition comes amid broader uncertainty in global markets, with many deals and IPOs delayed due to economic volatility and new U.S. tariffs. Despite past hesitations—following less successful acquisitions like Helmut Lang and Jil Sander in the late 1990s—Prada is now making a bold return to high-profile dealmaking, one that could reshape Europe’s luxury fashion scene for years to come.
