Italian fashion giant Prada has reached a landmark agreement to acquire its long-time rival Versace in a $1.375 billion deal, bringing together two of the country’s most iconic luxury brands.
The acquisition, announced on Thursday, marks a bold move by Prada as it looks to expand its global reach and strengthen Italy’s influence in an industry long dominated by French conglomerates like LVMH and Kering.
Versace, best known for its vibrant baroque designs and fearless aesthetic, has been struggling financially in recent years — operating at a loss under its current owner, Capri Holdings.
Prada, however, has managed to defy the slowdown in luxury demand, positioning itself as one of the sector’s most resilient players.
“We aim to continue Versace’s legacy — 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 rooted in longstanding relationships.”
A Discounted Purchase
The deal sees Prada acquiring Versace at a significantly lower valuation compared to the $2.15 billion (including debt) Capri Holdings paid when it bought the brand in 2018.
Capri Holdings — formerly Michael Kors — had acquired Versace from the Versace family and private equity firm Blackstone.
For Prada, owning Versace is more than just about expanding market share. The merger brings together distinct customer bases — from Prada’s understated sophistication to Versace’s flamboyant glamour — creating an Italian luxury powerhouse ready to challenge its French competitors.