In a major shakeup in the global fashion industry, Italian luxury powerhouse Prada has sealed a €1.25 billion ($1.39 billion) deal to acquire iconic label Versace from US-based Capri Holdings.
The move is expected to strengthen Prada’s position in the high-end fashion market, combining forces to generate over six billion euros in revenue—a strategic step aimed at challenging dominant French conglomerates like LVMH and Kering during a worldwide industry slowdown.
“We’re excited to begin a new journey with Versace, a house that mirrors our passion for creativity and craftsmanship,” said Prada Group chairman Patrizio Bertelli.
Capri Holdings, which also owns Jimmy Choo and Michael Kors, had originally purchased Versace in 2018 for €1.83 billion. But amid market pressures, including trade tensions during US President Donald Trump’s term, it was forced to settle for a lower selling price.
Talks between Prada and Capri began in late February, following years of struggling sales for Versace. Last month, Donatella Versace stepped down as creative director after more than three decades, passing the reins to Dario Vitale—previously the driving force behind Miu Miu’s success.
Donatella, who took over the brand after the tragic death of her brother and founder Gianni Versace in 1997, will now serve as the brand’s chief ambassador.
