Prada to acquire Versace in €1.25 bn deal

In a move signalling a major consolidation in the global fashion industry, Prada Group has announced its intention to acquire Italian luxury brand Versace in an all-cash deal valued at €1.25 billion.

The acquisition from Capri Holdings—expected to close in the second half of 2025 pending regulatory approvals—will see Prada assume full ownership of the iconic fashion house, marking a strategic expansion of its brand portfolio that currently includes Prada and Miu Miu.

To finance the deal, Prada will raise €1.5 billion in new debt, comprising a €1 billion term loan and a €500 million bridge facility. The final transaction value will be subject to standard closing adjustments.

Prada Group Chairman and Executive Director Patrizio Bertelli described the acquisition as a key strategic milestone. “Versace is a brand that perfectly aligns with Prada’s vision—fearless in style and rich in heritage,” he said.

Founded in 1978, Versace has built a global identity around provocative, bold design and glamorous Italian luxury. Prada emphasized that the brand will continue to operate with creative independence and retain its distinctive identity, while leveraging Prada Group’s manufacturing capabilities and global retail reach.

Prada Group CEO Andrea Guerra hailed the move as a defining moment. “Versace represents enormous potential. We will build on its legacy with care and long-term commitment,” he said.

Capri Holdings, which purchased Versace in 2018 for approximately $2.1 billion, is exiting the brand as part of a larger restructuring effort amid evolving market dynamics. The sale includes tax loss carry-forwards and associated transaction costs, to be borne by Capri.

The deal underscores a growing wave of consolidation in luxury fashion, as legacy houses seek scale and synergy in a rapidly shifting retail environment.