Italian fashion house Prada has acquired Versace from Capri Holdings for €1.25bn ($1.38bn), securing the deal at a €180m discount amid recent market upheaval linked to President Trump’s tariff policies. The acquisition, following months of speculation, unites two of Italy’s biggest fashion brands.
Insiders revealed the original agreement was expected to be around €1.43bn, but market uncertainty and trade tensions led to the price reduction. Capri, which also owns Michael Kors and Jimmy Choo, bought Versace for $2.1bn in 2018 and was reportedly under pressure to sell after a failed acquisition attempt by Tapestry.
Prada’s group chair, Patrizio Bertelli, stated the group is “ready and well positioned to write a new page in Versace’s history,” emphasizing a shared commitment to creativity and heritage. The acquisition signals Prada’s ambition to strengthen its position as a leading Italian fashion powerhouse, adding Versace to its existing portfolio of brands.
While the luxury fashion market faces a slowdown, the Prada Group has experienced significant growth, reporting a 17% revenue increase in 2024, partly driven by the success of its Miu Miu brand.
In a related move, it was recently announced that Dario Vitale, former image director at Miu Miu, would succeed Donatella Versace as creative director, with Versace taking on the role of chief brand ambassador. Despite being often seen as rivals with contrasting design aesthetics, Miuccia Prada and Donatella Versace reportedly share a close friendship.
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