Prada strengthens luxury hold with completion of $1.4 billion Versace acquisition

Italian fashion powerhouse Prada Group completed last month its $1.38 billion (€1.25 billion) acquisition of Milanese rival Versace from US-based Capri Holdings, marking a major consolidation in the luxury sector.

The deal, which received all regulatory approvals, brings the iconic brand founded by Gianni Versace in 1978 into Prada’s portfolio, alongside Prada’s minimalist namesake label and Miu Miu’s youthful aesthetic.

Ownership change

Versace, purchased by Capri Holdings for $2 billion in 2018, struggled to reach its full potential under US ownership. The sale proceeds will allow Capri to reduce debt. Donatella Versace, the brand’s outgoing creative chief and Gianni’s sister, welcomed the acquisition on Instagram, calling it a milestone for the label.

Prada heir Lorenzo Bertelli will assume the role of executive chairman at Versace while maintaining his responsibilities as the group’s marketing director and sustainability chief. Bertelli emphasized that no immediate executive changes are planned but highlighted the brand’s significant growth opportunities.

The integration process is already underway. Versace’s creative relaunch, led by new designer Dario Vitale, former Miu Miu head of design, debuted a 1980s-inspired collection at Milan Fashion Week in September, earning positive feedback from buyers. Financially, Versace accounted for 20% of Capri Holdings’ 2024 revenue of $6 billion (€5.2 billion).

Prada estimates that post-acquisition, Versace will represent 13% of its pro-forma revenues, alongside Prada at 64% and Miu Miu at 22%. Prada reported a 17% revenue increase last year, reaching $6.3 billion (€5.4 billion).

Market ambitions

The group plans to integrate Versace into its Italian manufacturing network, leveraging its factories and artisan training programs, which have trained over 570 craftsmen across Tuscany, Marche, Veneto, and Umbria.

While Prada has historically avoided large acquisitions, the company sees strategic deals as a way to strengthen its global position amid a luxury market rebound. Bertelli told Reuters in November that the group remains open to future opportunities, including a potential interest in Armani, following the death of Giorgio Armani in September, though no formal contacts have been made.

The Versace acquisition reflects Prada’s long-term strategy to combine iconic Italian fashion houses under one roof, balancing bold glamour with disciplined management, and positioning the group as a dominant player in the rebounding global luxury market.

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Hannah Xuchille Egot

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