Historic deal: Prada acquires Versace for nearly 1.4 billion
Prada buys Versace (photo: GettyImages)
The Italian fashion house Prada is entering into a historic deal with its competitor Versace, which has been part of the American Capri Holdings since 2018. Bloomberg reports what is known about the deal between the fashion giants.
Prada will acquire Versace for an estimated $1.38 billion. According to media reports, the deal price was agreed at about $1.6 billion but was revised downward amid Trump's tariffs. This is the company's largest acquisition in its 112-year history.
The deal is expected to close in the second half of the year. Prada had been negotiating the purchase of the competitor, founded by Gianni Versace in the 1970s, for several months. As explained in the company, the final price may still be adjusted after the assessment of Versace's working capital and net debt.
How the Versace acquisition will affect Prada
Prada is known for a more restrained aesthetic, whereas Versace is known for its flamboyant designs. Such a merger could add diversity to the company and the ability to expand its revenues in the future. Analysts believe that this is a strategic move that will help the brand compete with market giants such as LVMH and Kering.
“The acquisition of Versace marks another step in the evolutionary journey of our group, adding a new dimension, different and complementary,” said Prada CEO Andrea Guerra.
Prada showed good results in 2024 amid economic difficulties. The company's Miu Miu brand, which targets younger consumers, played a crucial role in revenues at a time when there was a global decline in the popularity of high fashion.
At the same time, analysts believe that Versace has lost its heyday. Capri, which also owns the Jimmy Choo and Michael Kors brands, failed to double the famous fashion house's revenues. The brand's styles have lost popularity among some customers. In addition, price increases have reduced the affordability of some products. According to company representatives, the sale of Versace is good for the company, as it will allow it to invest in its largest brand, Michael Kors.
Prada Group is a global luxury leader that manufactures and sells clothing, shoes, and accessories. The company includes such brands as Prada, Miu Miu, Church's, Car Shoe, Marchesi 182,4, and Luna Rossa.
Versace is an Italian manufacturer of fashionable clothing and other luxury goods, created in 1978 by fashion designer Gianni Versace. After the founder's death in 1997, the company was headed by his sister Donatella. In early March 2025, she announced that she was stepping down as creative director.
According to insiders, the designer was against the sale of the brand and could not find a common language with the director of the holding, John D. Idol. Now she allegedly cannot use her own name for any other brands.
