In a bold move reshaping the global luxury fashion landscape, Prada has agreed to acquire Versace for $1.375 billion, including debt, from Capri Holdings. The deal strengthens Italy’s influence in an industry largely dominated by French giants like LVMH.
Versace, known for its flamboyant baroque prints and bold aesthetic, has been operating at a loss in recent quarters. Meanwhile, Prada has defied a slowdown in luxury demand, posting solid growth.
The deal comes just weeks after Donatella Versace announced her departure as chief creative officer—a role she held for 28 years after the tragic murder of her brother and founder, Gianni Versace, in 1997.
Prada Chairman Patrizio Bertelli emphasized continuity, saying the group will “celebrate and re-interpret Versace’s bold and timeless aesthetic,” while providing the brand with a stable platform for growth.
Donatella called the deal a “new era” for the house of Versace and expressed admiration for the Prada family, saying she’s “ready to support this new chapter in any way.”
It’s also a bargain for Prada. Capri Holdings—formerly known as Michael Kors—paid about $2.15 billion for Versace back in 2018. Now, Prada is scooping it up at a significant discount amid market volatility and trade tensions.
Prada plans to take on €1.5 billion in new debt to finance the purchase. It’s their most high-profile acquisition since the late ’90s, when previous deals—like those for Helmut Lang and Jil Sander—proved less than successful.
Versace joins Prada’s portfolio alongside brands like Miu Miu and Church’s shoes, as the house founded in 1913 sets its sights on dominating the next era of luxury fashion.