Prada completes $1.38 billion acquisition of Versace, bringing two Italian icons together

Prada has officially taken ownership of Versace in a deal worth $1.38 billion, marking one of the most significant consolidations in modern luxury fashion. The acquisition price sits well below the nearly $2 billion that Capri Holdings paid for Versace in 2018, highlighting the slowdown the brand has faced in recent years.

With this move, Prada strengthens its growing luxury portfolio, which already includes Miu Miu, as it seeks to compete more aggressively with global groups such as LVMH, the parent of Louis Vuitton, Dior and Fendi.

The transition comes at a pivotal moment for Versace. Donatella Versace stepped down as creative chief in March after an influential 27-year leadership that defined the label’s glamorous identity and cemented the Medusa emblem as a cultural symbol. She originally took the helm in 1997 following the murder of her brother, Gianni Versace. Her successor, Dario Vitale, joined from Prada’s Miu Miu, signalling an internal realignment even before today’s announcement.

Despite its storied legacy, Versace struggled to maintain momentum under Capri Holdings, whose other brands include Michael Kors and Jimmy Choo. The group moved Versace toward a more minimalist aesthetic and raised prices, but sales did not keep pace. Capri is now offloading the brand at a loss of roughly $700 million.

Prada confirmed the takeover in a brief statement, saying the transaction has received all necessary regulatory approvals. Capri Holdings said proceeds from the sale will help reduce debt.
“We plan to use the proceeds to repay the majority of our debt, which will substantially strengthen our balance sheet,” said Capri chief executive John D Idol.

Prada chief executive Andrea Guerra had already expressed confidence in Versace’s future earlier this year, noting that the brand has “huge potential” but adding that “the journey will be long and will require disciplined execution and patience.”