Prada Acquires Versace for $1.4 Billion, Marking Historic Italian Fashion Merger
In a landmark move for the global fashion industry, Italian luxury powerhouse Prada has confirmed the acquisition of iconic fashion brand Versace from U.S.-based Capri Holdings in a cash deal worth approximately $1.4 billion. The acquisition, the largest in Prada’s 112-year history, restores Versace to Italian ownership and significantly bolsters Prada’s position in the global luxury market amid increasing competition from rivals like LVMH and Kering.
Prada Group chairman Patrizio Bertelli described the acquisition as a new chapter for a brand that shares Prada’s values of creativity, craftsmanship, and heritage. Capri Holdings, which had acquired Versace in 2018 for $2.1 billion, struggled to maintain the brand’s appeal amid shifting trends toward “quiet luxury.” Following a period of declining sales and market challenges, including U.S. trade tensions, Capri entered exclusive negotiations with Prada earlier this year, finalizing the deal despite settling for a lower price.
The acquisition is expected to close in the second half of 2025. In a significant leadership shift ahead of the deal, Donatella Versace stepped down as creative director last month, ending her over 30-year tenure. She has been succeeded by Dario Vitale, a rising star known for his success with Miu Miu. Donatella now serves as Versace’s chief ambassador as the brand begins a new era under the Prada Group umbrella.
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