In a stunning shake-up in the fashion world, Prada has agreed to acquire Versace in a $1.375 billion deal, including its debt. The move, announced Thursday, marks one of the biggest Italian fashion mergers in recent history and places Prada Versace as a formidable force against French luxury titans like LVMH.
This acquisition comes as Versace, known for its bold, baroque-style prints, has suffered financial losses in recent quarters. In contrast, Prada has remained strong despite a global luxury market slowdown.
Legacy Meets Expansion
The deal follows the March 13 announcement that Donatella Versace would step down as the brand’s chief creative officer after nearly three decades. Her brother Gianni Versace founded the brand in Milan in 1978.
“We aim to continue Versace’s legacy while giving it a platform for growth,” said Prada Chairman Patrizio Bertelli, who runs the company alongside designer Miuccia Prada, his wife.
Donatella praised the partnership, stating:
“Gianni and I always admired Miuccia and Patrizio. I am honored to have the brand in the hands of a trusted Italian fashion house.”
A Discounted Purchase
Prada is acquiring Versace at a sharp discount from the $2.15 billion Capri Holdings (formerly Michael Kors) paid in 2018. The recent economic turmoil, partially triggered by Trump’s new tariffs, is believed to have driven the price lower.
Capri CEO John Idol called the deal part of a larger strategy to strengthen Michael Kors and Jimmy Choo, the group’s other major holdings. Capri’s shares fell 3% on the news and are down 24% in 2025 so far.
Strategic Revival for Prada
This is Prada’s most significant acquisition since the late 1990s. Bertelli had previously admitted that past deals like Helmut Lang and Jil Sander were strategic mistakes. Now, with Versace under its wing, Prada is looking to enter new markets and gain a wider customer base.
“Versace has huge potential. The journey will require discipline and patience,” said Prada CEO Andrea Guerra.
Prada is funding the deal with €1.5 billion in new debt. The company, which also owns Miu Miu and Church’s, continues to expand globally from its historic Milanese roots, dating back to 1913.
Source: CNN
