Prada Group announced on Thursday that it has reached an agreement to acquire Italy’s iconic fashion brand, Versace, from U.S.-based luxury group Capri Holdings. The deal values the renowned fashion house at €1.25 billion (approximately $1.4 billion).
Prada explained that Versace’s distinct and recognizable style is a perfect fit for its portfolio, which already includes the Prada and Miu Miu brands. The company also highlighted the significant growth potential Versace holds, which remains largely untapped.
The final deal value will be adjusted at the time of closing, expected in the second half of the year. Prada will finance the acquisition with €1.5 billion in new debt. Both Prada and Capri Holdings’ boards of directors have approved the transaction.
Prada emphasized that while Versace will retain its unique creative vision and cultural authenticity, it will also benefit from the expansive resources of the Prada Group. This includes access to advanced industrial capabilities, retail operations, and strategic expertise.
Founded in 1978 by the late Gianni Versace, the fashion brand has been under the ownership of Capri Holdings since 2018, which also owns Michael Kors and Jimmy Choo. Capri Holdings had purchased Versace for $2 billion, but the brand had struggled to adapt to the “quiet luxury” trend that has gained popularity in recent years, as its bold, sexy designs seemed less aligned with current fashion preferences.
In response to the changing market, Capri Holdings appointed Dario Vitale as creative director last month to succeed Donatella Versace, who had led the brand after her brother’s tragic death in 1997. Vitale previously worked with Miu Miu, one of Prada Group’s most successful youth-focused labels. As part of the reshuffling, Donatella Versace was named chief brand ambassador, signaling a possible future sale, which had been speculated for some time. Miuccia Prada confirmed the group’s interest in the acquisition at Milan Fashion Week in February.
