Prada is set to acquire Versace from Capri Holdings in a $1.37 billion deal, marking the beginning of a new Italian fashion powerhouse in the luxury market. The deal is expected to be completed in the second half of 2025.
Patrizio Bertelli, Prada Group chairman and executive director, commented: “We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship, and heritage.”
“We aim to continue Versace’s legacy, celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”
World-renowned Versace, which has been operating in the luxury market for over 40 years, has been seeing declining performance amid changing consumer patterns from luxury shoppers, most recently with its revenue falling by 15% to $193 million in Q3 of 2025.
Capri Holdings took control of the luxury fashion giant in 2018 after Donatella Versace sold the company for $2.1 billion.
Donatella Versace took the helm at the brand in 1997 and served as creative director for over 30 years before stepping down last month, transitioning to chief brand ambassador.
Dario Vitale, who was the former design and image director of Miu Miu, was appointed as the chief creative officer in the C-suite shake-up.
Meanwhile, Prada continues to deliver a strong performance, with its net revenue soaring by 17% to around $6.1 billion in the fiscal year 2024. Prada operates a successful portfolio of brands, including Miu Miu, Church’s, and Luna Rossa.
Andrea Guerra, Prada Group’s CEO, added: “The acquisition of Versace marks another step in the evolutionary journey of our group, adding a new dimension, different and complementary. The group’s infrastructure is strong; we have verticalized our brands’ organizations and reinforced our routines and processes.”
The Italian brands are renowned for their contrasting aesthetics, with Prada focusing on minimalism and Versace being known for its bold, maximalist designs.
Moving forward, the respective brands aim to maintain their autonomous cultural identity, according to a statement released by the company.
The merger marks one of the biggest retail acquisitions in 2025, and is set to strengthen Prada’s presence.
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