Prada To Buy Rival Versace For $1.38 Billion

In a major shake-up of the luxury fashion industry, Italian fashion house Prada announced on Thursday that it has reached a deal to acquire rival label Versace for $1.375 billion, including debt, from Capri Holdings. The move marks a significant consolidation of two iconic names in Italian fashion, aiming to strengthen Italy’s position in a global luxury market dominated by French conglomerates.

The acquisition comes just weeks after Donatella Versace, sister of late founder Gianni Versace, stepped down as chief creative officer—signaling a new chapter for the legendary brand, which has struggled financially in recent years.

Prada, which has outperformed much of the luxury sector despite a global slowdown in demand, sees the deal as an opportunity to revitalize Versace and broaden its own consumer base. The Milan-based fashion house is known for its minimalist design, while Versace is recognized for its bold, baroque aesthetic—making the merger a high-profile blend of contrasting styles.

“We aim to continue Versace’s legacy by celebrating and reinterpreting its bold and timeless aesthetic,” said Prada Chairman Patrizio Bertelli. “At the same time, we will provide it with a strong platform reinforced by years of ongoing investments and deep-rooted relationships.”

Bertelli and his wife, designer Miuccia Prada, are the main shareholders in Prada, and their stewardship is expected to guide the integration of Versace into the group.

The acquisition price represents a significant markdown from the approximately $2.15 billion, including debt, that Capri Holdings paid for Versace in 2018. Back then, the brand was acquired from the Versace family and investment firm Blackstone.

“Versace has huge potential,” said Prada CEO Andrea Guerra. “The journey will be long and will require disciplined execution and patience.”

This deal is Prada’s most notable acquisition since the late 1990s, when it bought Helmut Lang and Jil Sander—moves later described by Bertelli as strategic missteps.