Prada acquires Versace in $1.4 billion deal, reshaping the future of Italian luxury fashion
Pranjal Chandra | Apr 10, 2025, 20:13 IST
( Image credit : AP )
Prada Group has announced its acquisition of Versace from Capri Holdings for €1.25 billion, a move set to reshape the luxury fashion landscape. The deal, expected to close in the second half of 2025, unites two iconic Italian brands with distinct aesthetics under Prada's umbrella.
In a defining moment for the global fashion industry, Italian luxury giant Prada Group announced Thursday that it has struck a deal to acquire iconic fashion house Versace from Capri Holdings in a transaction valued at €1.25 billion ($1.4 billion).
The landmark acquisition merges two of the most recognizable names in Italian fashion under one umbrella, signaling a bold new chapter for both brands and possibly for the luxury market itself.
While the final value will be adjusted at the time of closing, expected in the second half of 2025, the deal has already received approval from the boards of both Prada and Capri Holdings. It will be funded through €1.5 billion in new debt, marking one of Prada’s most ambitious strategic expansions in its history.
In a statement, Prada characterized Versace as a “highly recognizable aesthetic” and called the house a “strongly complementary addition” to its existing brand lineup, which already includes Prada and the Gen Z–beloved Miu Miu.
But beyond the boardroom, the deal represents a cultural and creative crossroads: the marrying of two divergent but equally iconic visions of Italian fashion.
Founded in 1978 by the late Gianni Versace, the house built its reputation on opulence, glamour, and an unapologetic embrace of bold silhouettes and baroque prints. In contrast, Prada has long championed understated intellectualism, pioneering the rise of "ugly chic" and, more recently, riding the wave of “quiet luxury” with exceptional success.
Versace’s transition into Prada’s fold comes at a time of internal upheaval. Just last month, Capri Holdings appointed Dario Vital formerly a breakout star at Miu Miu as Versace’s new creative director, replacing Donatella Versace, who had helmed the brand since her brother’s tragic murder in 1997. In a move that now reads like part of a larger strategy, Donatella stepped into the newly created role of Chief Brand Ambassador, a title designed to maintain her symbolic and strategic connection to the label.
While Capri Holdings paid $2 billion for Versace in 2018, the brand has struggled in recent years to stay aligned with the shifting sensibilities of luxury consumers. Amid the rise of muted aesthetics and minimalist silhouettes, Versace’s maximalist DNA appeared increasingly out of step.
Now, under Prada’s stewardship, the house is expected to benefit from the group’s “consolidated platform” including superior industrial capabilities, global retail infrastructure, and deep operational expertise. Crucially, Prada emphasized that Versace would maintain its “creative DNA and cultural authenticity,” suggesting that the brand’s daring legacy will be preserved, not diluted.
The acquisition is also seen as a strategic power move in an industry facing increasing consolidation. With luxury conglomerates like LVMH and Kering dominating global fashion, Prada’s move places it in a stronger competitive position, potentially igniting further shifts in market dynamics.
Fashion insiders began speculating about a potential acquisition earlier this year, when Miuccia Prada acknowledged the group's openness to expansion during Milan Fashion Week. The pieces were seemingly falling into place especially with Vitale's jump from Miu Miu to Versace, a signal that creative synergies were already being orchestrated behind the scenes.
As the deal unfolds, the industry will be watching closely to see how two radically different fashion philosophies Prada’s cerebral cool and Versace’s seductive flamboyance coexist, evolve, and possibly even collide.
What’s certain is that this deal marks more than just a financial transaction. It is a symbolic unification of Italy’s past, present, and future in luxury fashion a bet that bold legacies, if handled with care, can thrive in a new era.
The landmark acquisition merges two of the most recognizable names in Italian fashion under one umbrella, signaling a bold new chapter for both brands and possibly for the luxury market itself.
While the final value will be adjusted at the time of closing, expected in the second half of 2025, the deal has already received approval from the boards of both Prada and Capri Holdings. It will be funded through €1.5 billion in new debt, marking one of Prada’s most ambitious strategic expansions in its history.
In a statement, Prada characterized Versace as a “highly recognizable aesthetic” and called the house a “strongly complementary addition” to its existing brand lineup, which already includes Prada and the Gen Z–beloved Miu Miu.
But beyond the boardroom, the deal represents a cultural and creative crossroads: the marrying of two divergent but equally iconic visions of Italian fashion.
Founded in 1978 by the late Gianni Versace, the house built its reputation on opulence, glamour, and an unapologetic embrace of bold silhouettes and baroque prints. In contrast, Prada has long championed understated intellectualism, pioneering the rise of "ugly chic" and, more recently, riding the wave of “quiet luxury” with exceptional success.
Versace’s transition into Prada’s fold comes at a time of internal upheaval. Just last month, Capri Holdings appointed Dario Vital formerly a breakout star at Miu Miu as Versace’s new creative director, replacing Donatella Versace, who had helmed the brand since her brother’s tragic murder in 1997. In a move that now reads like part of a larger strategy, Donatella stepped into the newly created role of Chief Brand Ambassador, a title designed to maintain her symbolic and strategic connection to the label.
While Capri Holdings paid $2 billion for Versace in 2018, the brand has struggled in recent years to stay aligned with the shifting sensibilities of luxury consumers. Amid the rise of muted aesthetics and minimalist silhouettes, Versace’s maximalist DNA appeared increasingly out of step.
Now, under Prada’s stewardship, the house is expected to benefit from the group’s “consolidated platform” including superior industrial capabilities, global retail infrastructure, and deep operational expertise. Crucially, Prada emphasized that Versace would maintain its “creative DNA and cultural authenticity,” suggesting that the brand’s daring legacy will be preserved, not diluted.
The acquisition is also seen as a strategic power move in an industry facing increasing consolidation. With luxury conglomerates like LVMH and Kering dominating global fashion, Prada’s move places it in a stronger competitive position, potentially igniting further shifts in market dynamics.
Fashion insiders began speculating about a potential acquisition earlier this year, when Miuccia Prada acknowledged the group's openness to expansion during Milan Fashion Week. The pieces were seemingly falling into place especially with Vitale's jump from Miu Miu to Versace, a signal that creative synergies were already being orchestrated behind the scenes.
As the deal unfolds, the industry will be watching closely to see how two radically different fashion philosophies Prada’s cerebral cool and Versace’s seductive flamboyance coexist, evolve, and possibly even collide.
What’s certain is that this deal marks more than just a financial transaction. It is a symbolic unification of Italy’s past, present, and future in luxury fashion a bet that bold legacies, if handled with care, can thrive in a new era.