ROME — The Prada Group has made a significant move in the luxury fashion world by announcing its acquisition of Italy’s prestigious Versace from the American luxury brand Capri Holdings. The deal is valued at approximately 1.25 billion euros, or about $1.4 billion.
Prada emphasized that acquiring Versace, known for its distinct and recognizable style, adds a valuable dimension to its existing portfolio, which also includes the well-established Prada and Miu Miu brands. The company sees great potential for growth in the Milan-based fashion house, stating that there are many opportunities yet to be explored.
The final price of the acquisition is subject to adjustment upon closing, which is anticipated later this year. The transaction will be financed through 1.5 billion euros in new debt and has received approval from the boards of both Prada and Capri Holdings.
In its statement, Prada highlighted that Versace would retain its unique creative identity and cultural essence while gaining the advantages of Prada’s extensive resources in areas like manufacturing, retail operations, and overall expertise.
Versace was founded in 1978 by the late Gianni Versace and was acquired by Capri Holdings in 2018 for $2 billion. However, in recent years, Capri has struggled to redefine the brand’s image amid a shift toward a trend known as “quiet luxury,” departing from Versace’s traditionally bold and glamorous style.
Recently, Capri Holdings appointed Dario Vitale as the new creative director, taking over the position previously held by Donatella Versace, who stepped into the role following her brother’s tragic death in 1997. Vitale transitioned from Miu Miu, where he had enjoyed considerable success targeting younger audiences.
With this leadership shift, Donatella Versace has taken on the role of chief brand ambassador, a strategic move that many view as paving the way for Prada’s anticipated acquisition. Miuccia Prada had hinted at the company’s interest in Versace during Milan Fashion Week earlier this year.
