Italian fashion house Prada has announced the signing of a definitive agreement to acquire the iconic brand Versace from U.S.-based Capri Holdings for €1.25 billion. The merger is expected to create a major Italian luxury group with annual sales exceeding €6 billion. Therefore, positioning it to compete with global giants such as LVMH and Kering, despite current challenges in the international luxury market.
Prada CEO Patrizio Bertelli expressed excitement about welcoming Versace into the group, highlighting the shared values of innovation, craftsmanship, and Italian heritage. The deal marks a notable exception to the recent trend of French conglomerates acquiring major Italian fashion brands.
Capri Holdings had previously acquired Versace in 2018 for €1.83 billion. However, the group accepted a significantly lower valuation in light of the global slowdown in luxury demand and the rising U.S. tariffs.
The boards of both Prada and Capri Holdings have approved the transaction, which is expected to close in the second half of 2025.
This merger comes at a pivotal time, following Versace’s appointment of Dario Vitale as its new Creative Director last March. He succeeds Donatella Versace, who stepped down after leading the fashion house for more than two decades, following the death of its founder, Gianni Versace, in 1997.