Prada Acquires Versace for $1.38 Billion
In a landmark deal announced on April 10, 2025, Prada has acquired Versace from Capri Holdings for approximately $1.38 billion (€1.25 billion) in cash, bringing two of Italy’s most iconic fashion brands under one roof.
This acquisition strengthens Prada’s position in the luxury fashion industry, expanding its portfolio and market reach. Versace, known for its bold and glamorous designs, complements Prada’s avant-garde minimalism, offering potential for creative synergy.
Donatella Versace said in an Instagram post:
“I am absolutely delighted for Versace to become part of the Prada family. Gianni and I have always had a huge admiration for Miuccia, Patrizio and their family. I am honoured to have the brand in the hands of such a trusted Italian family business and I am ready to support this new era for the brand in any way that I can.”
The deal comes after Capri Holdings’ unsuccessful attempt to merge with Tapestry Inc., a move blocked by the U.S. Federal Trade Commission in 2024 over competition concerns. Facing financial pressures, Capri Holdings opted to divest Versace, which it had acquired in 2018 for $2.1 billion.
Donatella Versace, who stepped down as chief creative officer in March 2025, will remain with the brand as chief brand ambassador. She expressed her support for the acquisition, stating that it ensures Versace’s legacy continues under Italian ownership and it will be fruitful to make this Prada Versace deal a success.
Dario Vitale, formerly of Prada’s Miu Miu line, has been appointed as Versace’s new creative director. His appointment signals a fresh creative direction aimed at revitalizing the brand while preserving its distinctive identity.
Prada’s acquisition of Versace is seen as a strategic move to compete with French luxury conglomerates like LVMH. By consolidating two major Italian fashion houses, Prada aims to enhance its global influence and drive growth in the luxury market.
The integration of Versace into Prada’s portfolio is expected to bring operational efficiencies and expanded product offerings, positioning the combined entity for sustained success in the competitive luxury fashion landscape.
