The Italian luxury giant is born: Prada buys Versace for 1.25 billion euros
10 April 20:08
on April 10, 2025, the Prada Group officially announced the acquisition of the historic Versace fashion house, one of the most iconic names in Italian fashion, for a total value of 1.25 billion euros. This was reported by "Komersant Ukrainian" with reference to CNN
The deal includes not only the purchase of all shares, but also the assumption of part of Versace’s debt, which has burdened the brand’s financial performance in recent years.
Strategic goals: strengthening Italy’s position in the global luxury market
This acquisition is a clear signal of the revival of the Italian luxury industry at a time when the sector is dominated by large foreign conglomerates such as LVMH, Kering and Richemont. According to Prada CEO Patrizio Bertelli, the goal is to
“to create a globally competitive Italian luxury pole capable of enhancing the value of historic brands without distorting their identity.”
Versace fashion house was founded in 1978 in Milan by designer Gianni Versace. Its symbol is the head of the Medusa, a sign of attractive and dangerous beauty. From the very beginning, the brand stood out for its bold and bright style with baroque elements, sexuality and daring aesthetics, which made it an icon on the world fashion scene.
After Gianni’s tragic death in 1997, his sister Donatella Versace became the creative director of the house, preserving the brand’s recognizable DNA and strengthening its global presence. Among the famous Versace fans are Lady Gaga, Jennifer Lopez and Elton John, whose images in the brand’s clothes have repeatedly become part of pop culture.
In 2018, the fashion house was acquired by the American holding Capri Holdings for $2.1 billion. Today, the brand is actively developing the areas of haute couture, ready-to-wear, perfumery, accessories, and even hospitality. Versace’s annual turnover is about one billion euros, and its main target audience is millennials and representatives of Generation Z. Despite the change of ownership, Versace remains a symbol of Italian luxury and influence in global fashion.
Creative continuity and industrial synergy
Versace will continue to operate as an independent brand, maintaining its creative direction under the leadership of Donatella Versace, who will remain as Chief Creative Officer. Prada, on the other hand, will contribute its management know-how, production infrastructure and global distribution network to increase efficiency, sustainability and growth potential.
“We want to protect the essence of Versace, but give the brand the resources to look to the future,” Miuccia Prada said, adding that the deal also aims to “preserve the cultural value of Italian fashion.”
Prada fashion house is one of the most influential brands in the world of luxury fashion, founded in 1913 in Milan by Mario Prada as a family workshop selling leather goods. The brand became truly famous at the end of the XX century, when his granddaughter Miuccia Prada took over the management. She transformed the conservative brand into a symbol of intellectual fashion, combining minimalism, technology and unexpected shapes.
Under Miuccia’s leadership, Prada became synonymous with sophisticated elegance and experimentation with form and materials, and expanded its position in the world of art and architecture through the creation of the Fondazione Prada Foundation. In the 1990s, the brand experienced rapid growth, launching men’s and women’s ready-to-wear collections, a line of shoes and accessories, as well as subsidiary brands, including Miu Miu.
Today, Prada remains a key player in the fashion industry, regularly participating in Milan and Paris Fashion Weeks, and demonstrating a strong interest in innovation, sustainability, and cultural dialogue.
Context: a necessary sale for Capri Holdings
In 2018, the Versace fashion house was acquired by the American group Capri Holdings, which also includes Michael Kors and Jimmy Choo, for more than $2 billion. However, despite ambitious expansion plans, Versace struggled to maintain its planned growth due to uncertainty in global markets, the pandemic, and growing competition from Asia.
With this sale, Capri Holdings aims to reduce net debt and focus on a more sustainable strategy. According to internal sources, part of the proceeds from the deal will be reinvested in strengthening existing brands and digitalizing the offer.
Market impact and industry reaction
The acquisition was met with a very positive reaction in the fashion world and among financial analysts. Prada shares rose by 3.8% on the stock exchange within hours of the announcement, which indicates investors’ confidence in the deal.
According to Bain & Company, the merger of Prada and Versace could lead to a combined sales growth of more than 10% per year over the next three years, especially in key markets such as the United States, the Middle East and Southeast Asia.
The transaction is subject to customary antitrust clearance in Europe and the United States and is expected to close in the second half of 2025. If all goes according to plan, Prada will become one of the few independent groups able to compete with the French giants, but with a distinct Italian identity.
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