Prada will buy rival fashion house Versace for $1.4 billion in a deal uniting the two biggest names in Italian luxury, the brands announced Thursday.
The deal is part of a series of shakeups at Versace, where longtime creative leader Donatella Versace stepped aside last month.
“We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic,” Prada chairman Patrizio Bertelli said in a press release. “Our organization is ready and well positioned to write a new page in Versace’s history.”
Versace had been a money loser for its parent company, Capri Holdings. In announcing the major transaction, Capri said the sale would “strengthen our balance sheet” and “reflects our commitment to increase shareholder value.”
Capri, then known simply as Michael Kors, bought Versace for $2.1 billion in 2018. Before then, the Italian brand was operated by the Versace family — first Gianni, then his sister Donatella after his 1997 murder in Miami.
While many major fashion houses have posted subpar bottom lines in recent years, Prada has defied the downward trend. The company announced 17% year-over-year revenue growth in 2024, driven by its popular Miu Miu brand.
The deal for Versace will be funded by 1.5 billion euros of debt and is expected to close in the second half of 2025. It was approved by both the Prada and Capri boards of directors.
With News Wire Services
