Italian luxury giant Prada has officially declared its acquisition of fellow fashion giant Versace from U.S.-based Capri Holdings in a cash transaction worth around $1.4 billion.
“We are thrilled to welcome Versace into the Prada Group and to create a new chapter for a brand with which we share a deep passion for creativity, craftmanship and heritage,” Patrizio Bertelli, Chairman and Executive Director, Prada Group
Versace’s Changing Fortunes
Capri Holdings had bought Versace in 2018 for approximately €1.83 billion (around $2.1 billion). The Versace family then controlled 80% of the brand, with BlackRock controlling the remaining 20%, according to AFP.
But changing consumer preference towards “quiet luxury” was making it tough for Capri to keep the appeal of Versace’s flashy and maximalist style. Sales were declining, and Capri therefore chose to sell the Milan-based brand and initiated exclusive negotiations with Prada in February this year.
Deal Expected to Close Later This Year
Prada, which is based in Milan and is headed by designer Miuccia Prada and her husband Patrizio Bertelli, said the Versace takeover should be completed in the second half of 2025.
Bloomberg earlier reported in March that Prada was close to finalizing the deal with Capri Holdings, which had originally bought Versace for $1.8 billion.
The acquisition was finalized despite ongoing global trade uncertainties and tariffs introduced during the presidency of Donald Trump, which impacted Capri’s valuation and contributed to the brand’s reduced sale price.
This deal is Prada’s biggest one in its 112-year history, further cementing its footing in the global luxury market alongside titans LVMH and Kering.
Transition of Creative Leadership at Versace
In a move of change, Donatella Versace stepped down as creative director last month after more than 30 years as creative director.She had headed the brand since 1997, after her brother Gianni Versace, who established the fashion house in 1978, was tragically murdered.
She has now also assumed the role of chief ambassador, as her successor as creative director as of April 1 was Dario Vitale, who is credited with successful efforts for Prada’s youth-focused label Miu Miu.
