Friday, April 11, 2025 - Prada has announced a
landmark agreement to acquire rival Italian fashion house Versace from Capri
Holdings in a deal valued at $1.375 billion, including assumed debt.
The move, confirmed on Thursday, April 10, marks a major
consolidation within Italy’s luxury fashion industry and positions Prada for
greater influence in a market traditionally dominated by French conglomerates.
The acquisition comes amid contrasting fortunes for the two
fashion giants. While Prada has defied recent slowdowns in luxury demand with
steady growth, Versace has struggled with financial losses. The merger is set
to give Versace a new lease on life under the guidance of one of Italy’s most
prominent luxury players.
The transaction follows the March 13 announcement that
Donatella Versace would step down as chief creative officer, ending an era at
the brand founded by her late brother, Gianni Versace. The departure sets the
stage for a new chapter in the label’s evolution.
“We aim to continue Versace’s legacy celebrating and
re-interpreting its bold and timeless aesthetic,” said Prada Chairman Patrizio
Bertelli. He emphasized that Prada would offer Versace a solid platform
supported by years of strategic investment and deep-rooted industry
relationships. Bertelli, along with his wife and iconic designer Miuccia Prada,
are the primary shareholders in Prada.
The agreed price represents a significant markdown from the
$2.15 billion Capri Holdings, formerly known as Michael Kors, paid for Versace
in 2018. At the time, Capri acquired the brand from the Versace family and
private equity firm Blackstone.
Prada’s minimalist design ethos will now be complemented by
Versace’s signature baroque style and bold prints, expanding the company’s
reach to new customer segments.
“Versace has huge potential. The journey will be long and
will require disciplined execution and patience,” said Prada CEO Andrea Guerra,
signaling a strategic and measured approach to revitalizing the brand.
The acquisition comes during a period of broader uncertainty
in global markets. Several planned mergers, acquisitions, and IPOs have
recently been shelved amid equity market volatility and recession concerns
spurred by new U.S. tariffs.
Notably, Prada has largely avoided major acquisitions in recent decades following what Bertelli described as “strategic mistakes” in its late-1990s purchases of Helmut Lang and Jil Sander. This latest move marks a significant return to dealmaking, potentially reshaping the landscape of high-end fashion in Europe and beyond.
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