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Italian luxury brand Prada on Thursday confirmed its acquisition of Versace from the U.S.-based Capri Holdings in a cash deal worth around $1.4 billion.
“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, craftmanship and heritage,” said Prada Group chairman and executive director Patrizio Bertelli in a statement.
Capri Holdings, which owns Michael Kors and Jimmy Choo, had purchased Versace in 2018 for around €1.83 billion (then $2.1 billion), with the Versace family holding 80 per cent and BlackRock 20 per cent at the time, according to news agency AFP. However, with changing fashion trends favoring “quiet luxury,” the company faced challenges in maintaining Versace’s appeal with its signature bold styles.
Following a period of declining sales, Capri put the Milan-based fashion house up for sale and entered exclusive negotiations with Prada earlier this year, in late February.
Due to economic uncertainty and trade tensions under U.S. President Donald Trump’s administration, including imposed tariffs, Capri had to settle for a lower price than it originally paid.
Transaction to close in the second half of this year
The Milan-based luxury brand Prada, led by billionaire designer Miuccia Prada and her husband Patrizio Bertelli, announced that its acquisition of Versace is expected to be finalised in the second half of this year. Bloomberg had earlier reported on March 2 that Prada was close to sealing the deal with Capri Holdings Ltd., which had acquired Versace in 2018 for $1.8 billion.
This marks the biggest acquisition in Prada’s 112-year history and brings Versace back under Italian ownership. The move is expected to strengthen Prada’s position in the global luxury market, helping it better compete with major players like LVMH and Kering. It also offers Versace a new path for revival, something Capri struggled to achieve.
The deal went through despite ongoing global market instability driven by tariff tensions initiated under US President Donald Trump. Prada had been in months-long negotiations to acquire the iconic brand, known for its bold, ready-to-wear collections created by founder Gianni Versace in the 1970s.
In what many saw as a lead-up to the acquisition, Donatella Versace stepped down as creative director last month after over three decades in the role. She had taken the helm in 1997 following the tragic murder of her brother Gianni, who founded the fashion house in 1978.
As of April 1, she was succeeded by Dario Vitale, credited with driving strong sales at Prada’s youth-focused sister label, Miu Miu. Donatella, who turns 70 in May, now serves as the brand’s chief ambassador.
(With AFP, Bloomberg inputs)
