Prada to Acquire Versace in Landmark $1.39 Billion Deal

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Milan, Italian luxury fashion house, Prada announced that it has reached a definitive agreement to acquire 100% of Versace from the US-based Capri Holdings in a deal valued at €1.25 billion, equivalent to approximately $1.39 billion.

 

 

 

 

The acquisition marks a significant shift in the landscape of Italian luxury fashion, bringing together two of Milan’s most iconic brands under the Prada Group umbrella.

 

 

 

 

Versace, founded in 1978 by the late Gianni Versace, is renowned for its bold, glamorous, and often provocative designs featuring signature motifs like the Medusa head. The brand has a strong global recognition and a distinct aesthetic that has resonated with a diverse customer base.

 

 

 

 

Prada, known for its sophisticated, minimalist, and often avant-garde approach to fashion, sees the acquisition as a strategic move to enhance its portfolio and tap into Versace’s significant growth potential.

 

 

 

 

In a statement released today, Prada highlighted Versace’s “strong brand awareness” and its complementary nature to the existing Prada Group, which includes the Prada and Miu Miu brands.

 

 

 

 

Key Highlights of the Acquisition:

 

 

 

 

Purchase Price:

 

 

 

 

€1.25 billion (approximately $1.39 billion) on a debt and cash-free basis. The final cash consideration will be subject to adjustments at closing.

 

Funding: The acquisition will be funded by €1.5 billion of new debt for the Prada Group, consisting of a €1.0 billion term loan and a €0.5 billion bridge facility.

 

 

 

 

Strategic Rationale :

 

 

 

 

Prada aims to leverage its industrial capabilities, retail execution, and operational expertise to further develop the Versace brand while maintaining its creative DNA and cultural authenticity.

 

Leadership: While the creative direction of Versace recently saw Dario Vitale, head of design at Miu Miu, step in as creative director effective April 1, Prada has stated that Versace will maintain its own creative vision. Donatella Versace, who has been the creative director since her brother’s death, will assume the role of chief brand ambassador. There are no plans to change the CEO of Versace.

 

 

 

 

Financial Performance:

 

 

 

 

Capri Holdings, which acquired Versace for approximately $2 billion in 2018, has seen the brand represent about 20% of its 2024 revenue of €5.2 billion. Prada anticipates that Versace will constitute around 13% of the enlarged Prada Group’s pro-forma revenues.

 

 

 

 

Market Reaction :

 

 

 

 

Following the announcement, shares of Capri Holdings reportedly fell by more than 10% on Thursday morning, while Prada’s shares listed in Hong Kong experienced an increase.

 

 

 

 

I’llStatements from Key Figures:

 

 

 

 

Patrizio Bertelli, Prada Group Chairman and Executive Director: “We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship, and heritage. We aim to continue Versace’s legacy, celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”

 

 

 

 

Andrea Guerra, Prada Group CEO: “The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary. We feel ready to open this new chapter. Versace has huge potential. The journey will be long and will require disciplined execution and patience.”

 

Donatella Versace, Chief Brand Ambassador of Versace: “I am absolutely delighted to become part of the Prada family. I am honored to have the brand in the hands of such a trusted Italian family business, and I am ready to support this new era for the brand in any way I can.”

 

The transaction is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals. This acquisition is seen by many as a move by Prada to strengthen its position in the global luxury market and to compete more effectively with major French conglomerates. The Italian government has also welcomed the deal, viewing it as a positive step in keeping a historic “Made in Italy” brand under Italian ownership.