Milan, Italy – In a significant move within the fashion industry, Prada Group has announced its acquisition of Versace from Capri Holdings, a U.S.-based luxury conglomerate. The agreement values the iconic Italian brand at approximately €1.25 billion, equivalent to $1.4 billion.
This acquisition places Versace, celebrated for its daring designs and distinctive Medusa emblem, alongside Prada's unconventional elegance and the rapidly growing Miu Miu line. Prada anticipates considerable growth potential for Versace, a brand with a 47-year legacy.
"This is a strategic enhancement for our group, as there are no overlaps in creativity or customer base," stated Lorenzo Bertelli, Prada's Chief Marketing Officer and future leader of the company. He emphasized that Versace's global brand recognition significantly surpasses its current business performance.
The final transaction value is subject to adjustments upon the deal's completion, expected in the latter half of the year. The acquisition will be financed through €1.5 billion in new debt and has received approval from both Prada and Capri Holdings' boards.
According to Prada CEO Andrea Guerra, the acquisition aims to foster sustainable revenue growth and reinforce Versace's brand identity, rather than focusing on cost-cutting synergies. Prada assured that Versace will retain its creative essence and cultural identity while benefiting from Prada's operational and retail capabilities.
Executives have confirmed that the current CEO will remain in place, and Miuccia Prada will not be involved in Versace's creative direction. Guerra clarified that Dario Vitale's recent appointment as Versace's creative director, succeeding Donatella Versace, was unrelated to the acquisition, describing it as Vitale's independent decision.
Lorenzo Bertelli suggested that Miu Miu's success demonstrates the impact of subtle adjustments. "We aim to evolve the brand, not revolutionize it, by implementing strategic changes that will contribute to Versace's renewed success," he explained.
Capri Holdings, which also owns Michael Kors and Jimmy Choo, acquired Versace for $2 billion in 2018. However, the company has struggled to adapt Versace's bold aesthetic to the current trend of understated luxury.
In 2024, Versace accounted for 20% of Capri Holdings' €5.2 billion revenue. Post-acquisition, Versace is projected to represent 13% of Prada Group's pro-forma revenues, with Miu Miu at 22% and Prada at 64%. Last year, the Prada Group, which includes Church's footwear, reported a 17% revenue increase to €5.4 billion.
Donatella Versace, who assumed the role of creative director after her brother Gianni Versace's death in 1997, will continue to contribute to the fashion house as Chief Brand Ambassador.
"I am thrilled to join the Prada family," she shared on Instagram alongside a photo with Miuccia Prada. "I am honored that such a reputable Italian family business will now oversee the brand, and I am eager to support this new chapter for Versace."
The Italian government has expressed its support for the acquisition, viewing it as a safeguard for Versace's long-term future amidst challenges faced by other family-owned fashion brands that have sought external investment.
"An iconic 'Made in Italy' brand is returning to Italian ownership," commented Industry Minister Adolfo Urso.