Prada has officially announced its acquisition of Italian fashion house Versace from Capri Holdings in a landmark deal valued at USD 1.375 billion. This strategic move brings together two of Italy’s most iconic fashion brands, marking a significant moment for the luxury industry—especially for the Italian fashion scene, which has often been overshadowed by dominant French conglomerates like LVMH and Kering.
The deal underscores Prada’s ambitions to scale up and reinforce its global presence. Despite a general slowdown in luxury spending across several markets, Prada has remained resilient, maintaining growth and relevance through savvy investments, strong branding, and its signature balance between heritage and innovation. The acquisition of Versace—known for its bold, opulent designs and storied legacy—adds a powerful name to Prada’s portfolio and positions the company to take on its French rivals with greater force.
Versace, on the other hand, has been struggling financially and has been operating at a loss, despite its high brand value and global recognition. This move is expected to revive the house’s fortunes under the stewardship of a company that understands the nuances of high fashion and Italian craftsmanship. Prada’s Chairman, Patrizio Bertelli, emphasized the intent to honor Versace’s distinctive aesthetic. “We aim to continue Versace’s legacy by celebrating and re-interpreting its bold and timeless aesthetic,” Bertelli said in a statement. “At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”
Interestingly, the acquisition comes at a significant markdown compared to what Capri Holdings (formerly Michael Kors) paid in 2018. Capri had acquired Versace for approximately USD 2.15 billion, including debt. At the time, the acquisition was part of Capri’s strategy to form a multi-brand luxury group, but that plan has faced challenges. The resale to Prada now reflects a recalibration in valuation and perhaps a recognition of Versace’s need for deeper-rooted, fashion-driven stewardship—something Prada is uniquely equipped to provide.
With this deal, Prada not only gains a globally recognized brand with a rich design heritage, but it also strengthens Italy’s position in the luxury fashion ecosystem. The move could pave the way for further consolidation within the Italian fashion world, where legacy and modernity are constantly negotiating for space on the global stage. It’s also a moment of strategic reassertion for Italian luxury, as it seeks to remain competitive in an industry increasingly shaped by scale, innovation, and branding power.
As this high-profile merger unfolds, the fashion world will be watching closely to see how Prada integrates Versace while preserving its fiercely independent spirit—and whether this marks the beginning of a broader Italian luxury renaissance.
