In a landmark transaction reshaping the global luxury landscape, Italian fashion powerhouse Prada Group has finalized its acquisition of rival Versace for $1.38 billion. The deal, announced Tuesday, unites two of Italy’s most iconic fashion houses under single ownership, creating a strengthened competitor against French luxury conglomerates like LVMH.
The purchase price represents a significant discount from the approximately $2 billion that former parent company Capri Holdings paid for Versace in 2018. The reduced valuation follows slowed sales across Capri’s portfolio, which also includes Michael Kors and Jimmy Choo, and reflects Versace’s $700 million loss under Capri’s ownership.
This strategic move expands Prada’s brand portfolio beyond its namesake label and youth-focused Miu Miu line. The acquisition comes during a period of transformation for Versace, which saw creative leadership change hands in March when longtime creative chief Donatella Versace stepped down after 27 years. She was succeeded by Dario Vitale, previously a design director at Miu Miu.
Under Capri’s stewardship, Versace underwent notable strategic shifts, moving away from its signature ornate designs toward minimalist trends while simultaneously implementing price increases. Prada CEO Andrea Guerra expressed confidence in Versace’s future, noting earlier this year that the brand possesses ‘huge potential’ while acknowledging that realizing it would ‘require disciplined execution and patience.’
For Capri Holdings, the sale proceeds will primarily service outstanding debt, significantly strengthening the company’s balance sheet according to CEO John D. Idol. The transaction received all necessary regulatory approvals before Tuesday’s announcement.