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Prada Group Acquires Versace in Billion Dollar Fashion Deal

Prime Highlights

  • Prada Group buys Versace from US-owned Capri Holdings in record $1.4 billion transaction.
  • The acquisition returns Versace to Italian hands and into the stable of Prada’s luxury brands.

Key Facts

  • Versace will remain creatively independent under Prada’s ownership.
  • The transaction is subject to regulatory approval and will be financed by €1.5 billion of new debt.

Key Background

In a dramatic reversal of its own fortunes that turns the world of high fashion on its head, Prada Group announced it has reached an agreement to buy legendary Italian high fashion brand Versace from US owner Capri Holdings for $1.4 billion. The second-half-of-2025 strategic buy is a medium- and long-term risk by Prada to further solidify its own position as a global high fashion and luxury retailing titan.

The height of luxury and bling, Versace had been owned in the U.S. since 2018, when Capri Holdings subsequently Michael Kors Holdings acquired it for more than $2 billion. A style icon with cultural legitimacy to boot, Versace was operationally struggling as well, such as spotty revenues and poorly conceived attempts at expanding internationally. Michael Kors and Jimmy Choo parent Capri Holdings have been trying to create a multi-fashion brand empire but retreated after it tried an $8.5 billion shot merger bid failure on Tapestry Inc.

As far as the deal is concerned, business will go on as usual at Versace with potential for innovation. Dario Vitale will remain in his role as Creative Director, and Donatello Versace will be a new Chief Brand Ambassador. This familiarity will be hoped to maintain Versace’s brand and integrate it into Prada’s luxury system of management, which includes fashion brands Miu Miu and Church’s.

The Italian government is marketing the deal as a major repatriation of a world brand name, propelling Italy to the vanguard of high fashion. The deal has been seen by finance experts as a strategic purchase for Prada, offering cross-brand synergies and keeping its focus on craftsmanship, heritage, and innovation. Short-term integration costs could fund transition costs, but Prada can help to revitalize Versace’s heritage and improve its performance worldwide. It is worth some 13% of Prada’s estimated one-year turnover, and that says it all about the commercial worth of this brand icon.

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