Prada buys Versace for nearly 1.4 billion dollars
Prada buys Versace (photo: Getty Images)
The Italian fashion house Prada has signed 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 sum of $1.38 billion. According to media reports, the deal was initially agreed at around $1.6 billion but was revised downward due to Trump’s tariffs. This marks the company’s largest acquisition in its 112-year history.
The deal is expected to be closed in the second half of the year. Prada has been in talks to purchase the competitor, founded by Gianni Versace in the 1970s, for several months. As the company explained, the final price may still be adjusted after the evaluation of Versace’s working capital and net debt.
How the purchase of Versace will impact Prada
Prada is known for its more restrained aesthetic, while Versace is famous for its bold designs. This merger could add diversity to the company and open up opportunities for increased revenue in the future. Analysts consider this 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 strong results in 2024 despite economic difficulties. The company’s Miu Miu brand, which targets younger consumers, played a crucial role in revenue during a time when there was a global decline in the popularity of high fashion.
At the same time, analysts believe that Versace has lost some of its former glamour. Capri, which also owns brands like Jimmy Choo and Michael Kors, failed to double the revenues of the iconic fashion house. The brand’s styles lost popularity among some customers. Additionally, price hikes reduced the accessibility of certain products. According to company representatives, selling Versace is beneficial, as it will allow Capri to invest more in its largest brand, Michael Kors.
Prada Group is a global leader in luxury, engaged in the production and sale of clothing, footwear, and accessories. The company includes brands such as Prada, Miu Miu, Church's, Car Shoe, Marchesi 1824, and Luna Rossa.
Versace is an Italian luxury fashion brand founded in 1978 by designer Gianni Versace. After his death in 1997, the company was led by his sister Donatella. Notably, in early March 2025, she announced her departure from the position of creative director.
According to insiders, Donatella was opposed to the sale of the brand and could not reach an agreement with the holding's CEO, John D. Idol, regarding this matter. Allegedly, she is no longer allowed to use her surname for any other brands.
