Prada acquires Versace for €1.25 billion
Italian luxury giant Prada has acquired iconic designer brand Versace for €1.25 billion (approximately $1.38 billion), marking one of the biggest deals in the luxury sector this year. The transaction, completed at a discount of €180 million from the initial price of €1.43 billion due to recent market volatility, sees Versace transition from the financially troubled Capri Holdings to the Prada Group. The deal, expected to close in the latter half of 2025, strategically positions Prada as an even larger force in the global luxury market, alongside its sister labels Miu Miu and Luna Rossa.
Prada Group Chairman Patrizio Bertelli stated that the acquisition will honor Versace’s bold, timeless designs while providing the brand with a robust platform built on Prada’s extensive investments and longstanding industry relationships. Versace, known for its daring aesthetic, will retain its creative identity under this new arrangement, even as it gains operational strength from Prada’s established infrastructure.
Capri Holdings, which had acquired Versace in 2018 for $2.1 billion, had been facing financial challenges exacerbated by market disruptions, including the fallout from President Trump’s tariff policies and a failed merger with American fashion group Tapestry. These pressures contributed to Capri’s decision to sell Versace as part of its debt reduction efforts.
The deal is part of a broader trend in the luxury industry, with market dynamics prompting major strategic realignments. Notably, Prada reported a revenue of €5.4 billion in 2024—a 17% increase from the previous year—demonstrating its resilience even amid a downturn in the luxury fashion market. The acquisition is expected to expand the group’s global presence by integrating Versace’s signature designs with Prada’s refined aesthetic.
