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Italian luxury brand Prada has confirmed the acquisition of Versace from U.S.-based Capri Holdings in a deal worth approximately $1.4 billion. The acquisition is set to be finalized in the second half of this year, marking a significant milestone in Prada’s 112-year history.
The deal, which comes in the wake of a period of declining sales for Versace, will bring the Milan-based fashion house back under Italian ownership. This move is expected to bolster Prada’s position in the competitive global luxury market and strengthen its rivalry with industry giants like LVMH and Kering. Patrizio Bertelli, Prada Group’s chairman and executive director, expressed enthusiasm for the acquisition, saying, “We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship, and heritage.”
Versace, known for its bold, ready-to-wear collections, has long been an iconic player in the fashion world. Founded by Gianni Versace in 1978, the brand became synonymous with luxury and flamboyant style. However, following a shift in global fashion trends toward “quiet luxury,” Versace struggled to maintain its relevance under the ownership of Capri Holdings, which acquired the brand in 2018 for approximately $2.1 billion.
Capri Holdings, which also owns Michael Kors and Jimmy Choo, faced several challenges with Versace’s image, including maintaining its bold and extravagant designs. Despite efforts to revive the brand, including collaborations with various designers, Capri decided to sell Versace, entering exclusive negotiations with Prada earlier this year. The deal was finalized despite global economic instability and trade tensions, particularly the tariff disputes instigated during the presidency of Donald Trump, which had a negative impact on the fashion industry.
Prada’s acquisition represents the largest in its history and is expected to provide Versace with a fresh chance for revival, something that Capri struggled to achieve during its ownership. This acquisition also brings an end to Donatella Versace’s tenure as creative director. Donatella, who had led the brand for over three decades following her brother Gianni’s tragic death in 1997, stepped down last month. She was succeeded by Dario Vitale, who had previously driven significant growth at Prada’s youth-focused sister label, Miu Miu.
Donatella, who turns 70 this year, will continue her association with the brand as its chief ambassador. The acquisition of Versace also follows Prada’s ongoing efforts to adapt to changing consumer preferences, particularly among younger generations, as it aims to solidify its place in the luxury fashion market.
With this acquisition, Prada takes a bold step toward reshaping the luxury landscape, further cementing its status as one of the leading names in global fashion.
Sources By Agencies
