Prada’s acquisition of Versace signals a new era for Italian luxury

On December 2, 2025, Prada officially completed the acquisition of Versace — a deal that reunites two of Italy’s most iconic fashion houses under one roof.

Prada entered into a definitive agreement in April 2025 to purchase 100% of Versace from U.S.-based Capri Holdings, with an enterprise value of €1.25 billion (approximately US$1.4 billion). With regulatory approvals now secured, the acquisition has formally closed — marking a significant consolidation within the luxury-fashion industry.

A New Chapter Begins

In its April 2025 press release, Prada acknowledged that Versace is “one of the leading international fashion design houses and epitome of Italian luxury worldwide.” The statement emphasized that Versace’s “highly recognisable aesthetic … constitutes a strongly complementary addition to the Prada Group’s portfolio,” while highlighting the brand’s “significant untapped growth potential.”

Commenting on the acquisition, Patrizio Bertelli, Prada’s Chairman said:

“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.”

Meanwhile, Andrea Guerra, Prada’s CEO also weighed in:

“The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary. … The journey will be long and will require disciplined execution and patience.”

On her Instagram, Donatella Versace expressed her support for the transition: “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.”

She also acknowledged the takeover in an Instagram post, writing: “Today is your day and the day Versace joins the Prada family.”

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A post shared by Donatella Versace (@donatella_versace)

What Versace Brings — And What to Expect Next

Founded in 1978, Versace is globally recognised for its bold, glamorous and flamboyant aesthetic — very different from Prada’s more minimalist luxury. Under its previous owner, Capri Holdings, Versace had struggled to find the right positioning in a changing luxury market.

With the takeover, Prada aims to leverage its established industrial and retail infrastructure — including manufacturing, distribution, and global retail reach — to rejuvenate Versace. The promise is to preserve Versace’s creative DNA and cultural identity, even as the brand gains access to Prada’s operational strength.

According to Prada’s leadership, this isn’t just an acquisition — it is the start of a “new chapter” for Versace, blending heritage, craftsmanship, and a strengthened platform to re-interpret its bold aesthetic for contemporary audiences.

Challenges & The Road Ahead

Versace — despite its strong brand recognition — has struggled financially under prior ownership, with declining revenues and a loss of premium positioning. Reviving such a brand will require patience, disciplined execution, and a delicate balance between maintaining its distinct identity and aligning it with the larger strategic vision of Prada.

Prada’s executives themselves have cautioned that “the journey will be long.”

The Acquisition of Versace

The acquisition of Versace marks a bold strategic pivot for Prada — one that unites minimalism and maximalism under a single Italian luxury empire. By combining Prada’s operational might and long-term vision with Versace’s theatrical glamour and heritage, the deal opens the door to a revitalized global luxury brand portfolio. But success will depend heavily on how skilfully Prada preserves Versace’s creative DNA while deploying the resources and discipline needed to turn potential into performance.