In a landmark moment for Italian luxury, Prada has acquired Versace in a $1.375 billion deal from Capri Holdings, signalling a significant consolidation in the high-fashion landscape. The acquisition, which includes Versace’s existing debt, marks a bold move by Prada to expand its empire and strengthen Italy’s presence in a global market long dominated by French conglomerates such as LVMH.
The deal arrives just weeks after Donatella Versace announced her departure as Chief Creative Officer, bringing an end to an era that began following the tragic death of her brother, Gianni Versace, in 1997. Donatella has publicly expressed her support for the transition, describing Prada’s stewardship as a continuation of her family’s legacy. “Gianni and I have always held deep admiration for Miuccia and Patrizio. I trust the House is in good hands,” she said in a statement.
Prada Group Chairman Patrizio Bertelli echoed the sentiment, calling the acquisition a “celebration and re-interpretation” of Versace’s bold aesthetic. “This partnership will allow us to honour Versace’s heritage while giving it a stable and dynamic platform for future growth,” said Bertelli, who co-leads the Prada Group with Miuccia Prada.
The acquisition is also notable for its price tag - significantly lower than the $2.15 billion that Capri Holdings (then Michael Kors) paid in 2018. Analysts point to market volatility and a recent slowdown in luxury demand as contributing factors.
Still, Prada CEO Andrea Guerra remains optimistic. “Versace has immense global potential. It will require patience and discipline, but the synergy between our houses is powerful,” he noted.
The deal represents Prada’s first major acquisition since the 1990s, when it purchased Helmut Lang and Jil Sander - moves Bertelli once referred to as “strategic mistakes.” With Versace, however, the stakes feel different: two iconic Italian brands coming together, not in competition, but in creative alliance.
As the luxury market recalibrates post-pandemic and amid economic uncertainty, this union could mark a renaissance for Made in Italy - driven not just by heritage, but by a renewed vision for the future.
