In the fashion industry, the Italian powerhouse Prada Group has officially acquired the iconic brand Versace. The deal, valued at $1.38 billion, brings two of fashion’s most legendary names under one corporate roof, forging a stronger Italian contender against dominant French conglomerates.
The purchase price falls notably short of the roughly $2 billion that Versace’s former owner, Capri Holdings, paid for the brand in 2018. This represents a loss of approximately $700 million for Capri, which cited slowing sales at Versace as a factor. Capri Holdings, which also owns Michael Kors and Jimmy Choo, stated it will use the proceeds from the sale to repay the majority of its debt and strengthen its financial position.
This acquisition follows a significant leadership transition at Versace. Donatella Versace, the brand’s visionary creative director for 27 years, stepped down in March. She was succeeded by Dario Vitale, a former Miu Miu design director from within the Prada family, signaling early integration.
Strategic Expansion in a Competitive Arena
The move strategically expands Prada’s portfolio—which includes its namesake label and Miu Miu—as it seeks to compete more aggressively with rivals like LVMH (owner of Louis Vuitton, Dior, and Fendi). Prada’s Chief Executive, Andrea Guerra, has expressed strong belief in Versace’s “huge potential,” while acknowledging the path ahead “will require disciplined execution and patience.”
Under Capri’s stewardship, Versace was known for evolving from its recognizably ornate, glamorous DNA towards a more minimalist direction, concurrent with significant price hikes. The fashion industry will now watch closely to see how Prada guides the future of Versace’s iconic Medusa head logo and its storied legacy.
Prada confirmed the completion of the acquisition Tuesday in a brief statement, noting it had received all necessary regulatory approvals.
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