Prada Set to Acquire Versace in a Landmark €1.5 Billion Deal

In a move poised to reshape the global luxury fashion landscape, Prada SpA is reportedly nearing the acquisition of Versace from Capri Holdings Ltd.

The deal, valued at approximately €1.5 billion (around $1.6 billion), marks a significant consolidation in the Italian fashion industry, bringing together two of its most iconic brands under one ownership.

This acquisition represents a pivotal moment for Italy’s luxury sector, reversing years of foreign acquisitions of homegrown brands and strengthening Italy’s position as a global fashion powerhouse.

Prada and Versace, known for their contrasting aesthetics—Prada's sleek minimalism and Versace's bold maximalism—are expected to complement each other, creating a synergy that could redefine luxury fashion trends worldwide.

The acquisition is seen as a strategic move by Prada to bolster its competitiveness against French luxury giants like LVMH and Kering. Prada has been thriving despite a global slowdown in the luxury market, with its 2024 net profit soaring by 25% to €839 million, driven by strong sales in Asia and Europe.

Meanwhile, Versace has struggled financially under Capri Holdings, reporting declining revenues and widening losses in recent quarters.

Bringing Versace under its umbrella would not only expand Prada’s portfolio but also create opportunities for innovative collaborations that merge their distinct creative visions. Analysts believe this merger could generate new appeal for global consumers while minimizing market overlap.

Negotiations for the deal have been ongoing since early 2025, with Prada granted exclusive access to Versace’s financial data after initial due diligence revealed no major risks.

While the final terms are still subject to change, sources indicate that an announcement could be made as early as April 10.

The acquisition also comes amid leadership changes at Versace, with Dario Vitale from Prada’s Miu Miu brand recently appointed as Versace’s Chief Creative Officer, succeeding Donatella Versace.

For Capri Holdings, the sale aligns with its broader strategy of divesting assets following financial challenges, including the collapse of an $8.5 billion merger with Tapestry Inc. The sale of Versace is expected to help Capri refocus its resources on stabilizing its remaining brands.

The merger underscores a broader trend of consolidation in the fashion industry as brands seek to navigate economic challenges and maintain global relevance.

It also reflects Italy’s renewed focus on supporting its fashion sector, with government initiatives aimed at strengthening supply chains and promoting sustainability.

If finalized, this acquisition would not only signal Prada’s ambition to build a formidable luxury empire but also reaffirm Italy’s dominance in high-end fashion.