Prada acquires Versace for $1.4 billion in strategic bid to strengthen Italian luxury amid market shifts and tariff uncertainty

Prada acquires Versace from Capri Holdings for $1.4 billion, reinforcing Italian luxury in the global fashion market.

Prada Group has officially acquired iconic fashion house Versace for $1.4 billion in a landmark cash deal with Capri Holdings, reclaiming Versace under Italian ownership and making a major power play in the global luxury fashion industry. The acquisition, confirmed Thursday, brings together two of Italy’s most famous fashion labels at a time of economic volatility and tariff uncertainty.

Led by Miuccia Prada and Patrizio Bertelli, with Andrea Guerra as CEO, the Prada Group sees the move as a long-term investment aimed at revenue expansion rather than cost-cutting. “We are delighted to welcome Versace to the Prada Group and to build a new chapter,” said Bertelli. “Our organisation is ready and well positioned to write a new page in Versace’s history.”

Versace, once acquired by Capri Holdings for $2 billion in 2018, had faced recent financial losses. Capri, which also owns Michael Kors and Jimmy Choo, needed to divest to refocus efforts after a blocked $8.5 billion merger with Tapestry Inc. Versace’s sale was accelerated by market turbulence and the failure of that consolidation effort.

The merger is a strategic move to counterbalance the dominance of French luxury conglomerates like LVMH and Kering. With this acquisition, Prada strengthens Italy’s competitive stance in high fashion, offering a counterforce to French-led global consolidation. While Prada is known for its minimalist, refined style, Versace is renowned for its bold, baroque flair—raising the challenge of maintaining both brand identities under one umbrella.

Donatella Versace, who stepped down as Chief Creative Officer in March, expressed support: “I am ready to support this new era for the brand in any way that I can.”

 

 

 

 

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Production synergies and shared values between both brands, including a commitment to craftsmanship and heritage, are expected to drive growth into emerging markets. The final transaction is expected to close in the second half of 2025, pending financial adjustments.

As Prada continues to thrive—reporting a 15% revenue rise in 2024—the acquisition sets the stage for a reinvigorated future for Versace, under Italian stewardship once again.