Prada acquires Versace for $1.37 billion to reignite Italy¡¯s luxury fashion, challenge French dominance head-on
Prada will acquire Versace from Capri Holdings for $1.375 billion. With Versace running losses and Prada pushing expansion, the deal aims to strengthen Italy¡¯s position in a global market dominated by French luxury brands.
Prada has finalized a deal to acquire fashion rival Versace from Capri Holdings in a transaction valued at $1.375 billion, starting a bold union of two iconic Italian labels. The announcement came Thursday, positioning Prada to broaden its reach while breathing new life into Versace.
While Prada continues to grow even amid a global dip in luxury spending, Versace has faced ongoing financial struggles. This acquisition not only reinforces Italy¡¯s influence in a high-end fashion sector long ruled by French companies, but also signals Prada¡¯s intent to scale further.
A strategic bet on Versace¡¯s iconic style
Prada Chairman Patrizio Bertelli emphasized that the group plans to carry forward Versace¡¯s signature aesthetic, known for its daring and enduring style. ¡°Our goal is to continue reimagining Versace¡¯s legacy while anchoring it within a stable, well-invested platform built over decades,¡± he said.
Prada continues to grow even amid a global dip in luxury spending | Credit: X
The amount Prada is paying is considerably less than what Capri shelled out in 2018¡ªapproximately $2.15 billion including debt¡ªwhen it took over the brand from the Versace family and private equity firm Blackstone. Capri, formerly known as Michael Kors, had hoped to elevate Versace¡¯s global profile.
Prada returns to deal-making after two decades
For Prada, acquiring a house like Versace¡ªwith its ornate, baroque-inspired fashion¡ªoffers access to a new customer base distinct from its own clean, minimalistic branding. Prada CEO Andrea Guerra said the label sees immense opportunity in the deal but acknowledged it would take time and consistent strategy to unlock full value.
This highlights Prada¡¯s first major acquisition in over two decades. The brand has been cautious in dealmaking ever since its purchases of Helmut Lang and Jil Sander in the late 1990s, which Bertelli himself previously called strategic errors.
Now, with this calculated move, Prada re-enters the M&A space with an eye on global fashion dominance¡ªand a renewed belief in Italian luxury power.
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Nancy Jaiswal is a journalist who started her career in reporting and has covered both hard and soft news. From serious city news developments to lighthearted lifestyle pieces, she has written on almost everything hapenning in India (except maybe alien invasions¡ªyet!). For her, writing isn¡¯t just work; it¡¯s a passion, an obsession, and sometimes the reason she forgets to reply to texts.
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