Prada Acquires Versace in $1.39 Billion Deal, Reinforcing Italian Fashion Power
In a bold move that’s set to reshape the luxury fashion world, Prada has acquired Versace for €1.25 billion (approximately $1.39 billion). This high-profile acquisition brings together two iconic Italian brands and strengthens Italy’s influence in a global market largely dominated by French luxury powerhouses like Louis Vuitton and Dior.
The seller, Capri Holdings—formerly Michael Kors Holdings—originally acquired Versace in 2018 for $2.15 billion. However, amid ongoing financial struggles, including a reported $547 million loss in 2024, the company has sold the legendary brand at a $750 million deficit.
Patrizio Bertelli, Chairman of Prada Group, expressed confidence in the acquisition, stating:
"We aim to continue Versace’s legacy, celebrating and reinterpreting its bold and timeless aesthetic. At the same time, we will provide it with a strong platform built on years of investment and industry relationships."
Founded in 1978, Versace had previously been owned by the Versace family and private equity firm Blackstone before being acquired by Capri. Now, as part of Prada Group, Versace joins a high-end portfolio that includes Miu Miu, Luna Rossa, Car Shoe, and Church’s, expanding Prada’s footprint across both fashion and footwear.
This move marks a rare acquisition for Prada, which has historically maintained a cautious approach. Notably, its 1990s purchases of Helmut Lang and Jil Sander were later considered strategic errors. However, the Versace deal signals a new direction for the group—one that embraces calculated expansion and a stronger competitive stance in the global luxury sector.
Following the news, Prada’s stock on the Hong Kong Stock Exchange rose by 4.93%, offering a much-needed boost as the company remains down 24% year-to-date.
With this strategic acquisition, Prada not only secures a greater share of the global fashion market but also revives the narrative of Italian excellence in luxury design. The brand synergy between Prada and Versace is expected to drive innovation, elevate branding, and increase visibility across international markets.