Prada Acquires Versace in €1.25bn Deal, Uniting Italian Fashion Giants.
Prada has officially acquired Versace in a landmark €1.25 billion ($1.38 billion) deal, uniting two of Italy’s most iconic fashion houses under one roof. The acquisition, finalized after months of speculation and market volatility, came at a €180 million discount from the originally anticipated price of €1.43 billion.
Sources close to the negotiations revealed that the deal was nearly derailed amid global retail instability triggered by President Trump’s tariff policies. However, Prada managed to secure Versace at a significantly reduced price—an outcome reflecting the broader pressures on the luxury retail market.
Capri Holdings, which also owns Michael Kors and Jimmy Choo, originally acquired Versace in 2018 for $2.1 billion. Following the collapse of an $8.5 billion takeover bid from American luxury conglomerate Tapestry—blocked last year by the U.S. Federal Trade Commission—Capri has been under increasing financial pressure to divest assets and reduce its debt. Prada, according to insiders, was among the earliest and most consistent bidders.
In a statement celebrating the acquisition, Prada Group chair and executive director Patrizio Bertelli said the group was “ready and well positioned to write a new page in Versace’s history.” He added that the brands “share a strong commitment to creativity, craftsmanship and heritage.”
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While Capri’s ambitions to build an American luxury empire have faltered, the acquisition underscores Prada’s renewed determination to expand its influence as a global Italian fashion leader. Versace will join an eclectic portfolio of brands under the Prada umbrella, which includes Prada and Miu Miu, footwear labels like Church’s and Car Shoe, the prestigious Luna Rossa America’s Cup sailing team, and the artisanal pastry brand Marchesi.
This is not Prada’s first foray into fashion consolidation. In the late 1990s and early 2000s, the company briefly acquired brands like Jil Sander, Helmut Lang, and Alaia. However, financial difficulties and creative clashes led to their eventual separation by 2007. The Versace deal now presents a renewed opportunity for Prada to broaden its global reach and reinforce its commitment to “Made in Italy” excellence.
Despite a cooling luxury market, the Prada Group has continued to post strong performance. In 2024, it reported €5.4 billion in revenue—a 17% year-over-year increase. A key driver of this growth has been Miu Miu, which saw its profits nearly double thanks to viral hits like its micro-miniskirts and satin ballet flats.
As part of the acquisition’s leadership changes, Dario Vitale, former image director at Miu Miu, will succeed Donatella Versace as creative director. Donatella, who has led Versace’s creative vision for 27 years, will take on the new role of chief brand ambassador, overseeing celebrity styling and philanthropic initiatives.
Though Prada and Versace have long been seen as rivals—one known for intellectualism, the other for glamour—their relationship is marked by mutual admiration. “We just talk, talk, talk. She’s so inspiring. We make fun of each other and teach each other,” Donatella told The Telegraph in 2012. “She says, ‘I could never make sexy clothes, but I love them.’ And I say, ‘Well, I love what you do’.”
A New Era for Italian Fashion
This historic union brings together two legendary but distinct visions of Italian style: Prada’s cerebral chic and Versace’s bold sensuality. With strong leadership, complementary aesthetics, and an eye on global expansion, the Prada–Versace merger signals a new golden chapter for Italian fashion—one built not on rivalry, but on collaboration, innovation, and shared heritage.
