Prada Buys Versace, Reshaping the Luxury Fashion Landscape

Prada struck a $1.375 billion deal to buy Versace from Capri Holdings on Thursday. This stunning acquisition will unite two of the biggest names in Italian fashion.

Per a Prada press release, the company said that Versace’s addition to its portfolio is “complementary” and “displays significant untapped growth potential leveraging multiple value creation levers.” It added that the luxury brand would retain its authenticity but benefit from the Prada Group’s platform, “including industrial capabilities, retail execution and operational expertise.”

Patrizio Bertelli, Prada Group chairman and executive director, said of the acquisition, “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. We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships. Our organisation is ready and well positioned to write a new page in Versace’s history, drawing on the Group’s values while continuing to execute with confidence and rigorous focus.”

Prada has struck a deal to purchase Versace from Capri Holdings at an enterprise value of $1.375 billion. pic.twitter.com/oM9n8pcVxH

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Subsequently, Andrea Guerra, Prada Group’s chief executive officer, added, “The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary. The Group’s infrastructure is strong, we have verticalised our brands’ organisations and reinforced our routines and processes.”

Guerra added, “We feel ready to open this new chapter. Versace has huge potential. The journey will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus. I would like to thank Capri Holdings for having preserved and enhanced the heritage of this wonderful brand. Notwithstanding the sector uncertainties, we look at the future with confidence, focused on a long-term strategic vision.”

The deal, approved by both companies’ boards, is set to close in the second half of 2025, pending regulatory approvals and standard conditions.

The Versace Brand Is Synonymous With Italian Luxury

Founded in 1978 by the visionary designer Gianni Versace, the brand quickly became synonymous with bold glamour, sensuality, and Italian luxury. Known for its vivid prints, daring silhouettes, and iconic Medusa logo, Versace rose to fame in the 1980s and ’90s, dressing some of the world’s biggest stars and helping to define the era of the supermodel. Gianni’s unique blend of classical inspiration and pop culture flair established the house as a global fashion powerhouse.

After Gianni’s tragic death in 1997, his sister Donatella took the creative reins, infusing the brand with her signature rock-and-roll edge while staying true to its bold aesthetic. Under her leadership, Versace continued to dominate red carpets and runways, with unforgettable celebrity moments, such as Jennifer Lopez’s green dress at the 2000 Grammys, cementing the brand’s cultural relevance.

The brand also expanded into accessories, fragrances, and home collections, further establishing its luxury lifestyle identity. Then, in 2018, Versace joined Capri Holdings, marking its first major ownership shift.

Now, with its acquisition by Prada, Versace enters a new chapter. It unites two of Italy’s most iconic fashion houses under one banner. As the industry watches this historic merger unfold, the brand’s legacy of innovation, glamour, and unapologetic style is poised to continue evolving in bold new ways.