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Reading: Prada Acquires Versace for €1.25 Billion to Create Italian Luxury Giant
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Prada Acquires Versace for €1.25 Billion
PhotoNews Pakistan > Entertainment > Prada Acquires Versace for €1.25 Billion to Create Italian Luxury Giant
Entertainment

Prada Acquires Versace for €1.25 Billion to Create Italian Luxury Giant

Web Desk
By Web Desk Published April 11, 2025 4 Min Read
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Photo Credit: @luxuriousbymm (Instagram)
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Prada announced Thursday that it has finalized an agreement to acquire Italian luxury brand Versace for €1.25 billion ($1.38 billion). The purchase from Capri Holdings aims to build a robust fashion powerhouse, bringing renewed vitality to the iconic but struggling label.

The acquisition, eagerly anticipated in the luxury fashion industry, will establish a group generating over €6 billion in annual revenues. Prada aims to effectively compete with major French conglomerates like LVMH and Kering, the parent company of Gucci.

Prada Group Chairman Patrizio Bertelli expressed enthusiasm, stating, “We are delighted to welcome Versace to the Prada Group and build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship, and heritage.”

Capri Holdings originally acquired Versace in 2018 for €1.83 billion ($2.1 billion) from the Versace family (80%) and investment fund BlackRock (20%). However, declining sales led Capri to seek buyers, ultimately settling for a lower offer from Prada due to market volatility influenced by US tariffs imposed by President Donald Trump.

Prada Group reached an agreement with Capri Holdings to acquire designer brand Versace in a deal valued at $1.38 billion.
Read more: https://t.co/fpg5CkxBLd pic.twitter.com/G7hhdc09DT

— Forbes (@Forbes) April 10, 2025

The Financial Times reported that the initial asking price was approximately $1.6 billion, which was later negotiated to $1.38 billion amid recent economic uncertainties.

Donatella Versace Steps into New Role

Donatella Versace recently stepped down as creative director after over three decades, signalling a major shift ahead of the acquisition. She assumed the role in 1997 following the murder of her brother, Gianni Versace, the brand’s founder. As of April 1, Donatella was replaced by Dario Vitale, previously responsible for the resurgence and success of Prada’s youth-focused label Miu Miu. Donatella Versace will remain the chief brand ambassador.

Prada’s Plan to Revitalize Versace

Versace’s global appeal, known for extravagant glamour, has waned somewhat in recent years. Capri projected a decline in annual turnover to $810 million by 2025, down from $1.03 billion the previous year. In contrast, Prada continues to thrive financially. Under the leadership of Miuccia Prada, the granddaughter of Prada’s founder Mario Prada, the brand saw profits surge 25% to €839 million in 2024, with revenues growing 15% to €5.4 billion.

Prada CEO Andrea Guerra emphasized Versace’s potential but acknowledged the challenges ahead. “The journey will be long and require disciplined execution and patience,” Guerra said. The deal, financed by €1.5 billion of new debt, is expected to close in the second half of 2025.

Prada to Acquire Versace From Capri in $1.4 Billion Deal

Full details here: https://t.co/ZelLkos23J pic.twitter.com/N1mBxRay6s

— Complex (@Complex) April 10, 2025

Despite their distinct styles, Versace’s boldness contrasts Prada’s minimalistic sophistication, and the two brands aim for synergy. Prada’s marketing director, Lorenzo Bertelli, clarified the company’s stance: “I don’t think we need to change or revolutionise the brand. We need to evolve it. Together, they will create a huge spark and restore Versace’s success.”

Lorenzo Bertelli, the son of Miuccia Prada and Patrizio Bertelli, also confirmed his mother would have no direct creative involvement in Versace.

Read: Prada and Axiom Space Unveil New Spacesuit for Artemis 3 Moon Mission

Historically, Prada’s expansion efforts, such as acquisitions of Jil Sander and Helmut Lang, ended with divestments after poor performance. Analysts urge caution about distractions from Prada’s core business.

Luca Solca, an analyst at Bernstein, noted, “I see a risk for Prada to become distracted from its core business,” highlighting the importance of strategic focus as Prada integrates Versace into its portfolio.

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