Italian fashion giant PRADA announced on Thursday that it has signed a deal to acquire Versace for 1.25 billion euros (around $1.38 billion). This highly big move will create a major Italian fashion powerhouse with combined revenues exceeding 6 billion euros. The ambition is to better compete with French giants like LVMH,Kering and Gucci. Prada Group chairman Patrizio Bertelli expressed excitement over the acquisition by spotlighting a shared passion for creativity and heritage between the two iconic brands.
Versace was previously bought in 2018 by the American group Capri Holdings for 1.83 billion euros but declining sales forced Capri to look for a buyer.
Exclusive talks with Prada began in late February.A major sign of change came last month when Donatella Versace stepped down as the brand’s creative director after over three decades. She had taken over in 1997 following the tragic murder of her brother Gianni Versace, the founder of the fashion house. On April 1 she was replaced by Dario Vitale who has seen strong sales growth at Prada’s youth focused brand Miu Miu. Donatella will now serve as Versace’s Chief Brand Ambassador.
Capri expected the brand’s revenue to fall to $810 million in the 2025 down from $1.03 billion the year before. In contrast Prada is performing strongly under the creative leadership of Miuccia Prada with net profit rising 25% in 2024 to 839 million euros and revenue up 15% to 5.4 billion euros.
Prada’s CEO Andrea Guerra acknowledged Versace strong potential but cautioned that the brand turnaround would require time, discipline and patience. The acquisition will be financed through 1.5 billion euros of new debt and is expected to close in the second half of 2025. Capri on the other hand said the sale would help it focus on strengthening its core brands like Michael Kors and improving its financial position.
Despite their different artistry Prada sees Versace as a complementary addition. Pradas Marketing Director Lorenzo Bertelli said that the brand would not be radically changed but evolved instead to restore its former glory.
