Prada Group announced Thursday that it’s acquiring Italian fashion house Versace from U.S.-based Capri Holdings in a deal worth 1.25 billion euros, or roughly $1.4 billion.
The deal marks a major shift in the luxury landscape as Prada strengthens its hold on high-end fashion by bringing Versace, known for its bold prints and high-glam silhouettes—into its portfolio, which already includes Prada and the trend-savvy Miu Miu.
Prada called the acquisition a “strongly complementary addition” to its brand family, highlighting Versace’s distinct aesthetic and what it described as “significant untapped growth potential.” The deal, funded by 1.5 billion euros in new debt, has already been approved by the boards of both Prada and Capri Holdings and is expected to close later this year.
Importantly, Versace won’t be losing its essence. Prada emphasized that the label will keep its creative DNA and cultural authenticity while gaining access to the group’s large-scale manufacturing, retail infrastructure, and operational support.
Versace, founded by the late Gianni Versace in 1978, has seen many evolutions over the decades. Capri Holdings acquired the brand in 2018 for $2 billion, hoping to reinvigorate it alongside Michael Kors and Jimmy Choo. But in a post-pandemic world favoring “quiet luxury” and subtle style, Versace’s louder, more glamorous identity struggled to fit the trend.
In a key move signaling the next chapter, Versace recently named Dario Vitale, formerly of Miu Miu, as its new creative director, replacing Donatella Versace, who had led the brand since her brother’s passing in 1997.
With this acquisition, Prada not only doubles down on Italian heritage but also sets the stage for a new era in fashion, where tradition meets strategic reinvention
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