Prada Buys Versace for $1.4 Billion
In what is being lauded as a “new chapter in luxury fashion”, the details of the acquisition of Versace by the Prada Group has now being ironed out.
After what WWD is describing as “intense negotiations”, Prada has bought the Versace brand for $1.4 billion. It ends a long-running saga, which has seen parent company – Capri Holdings – change its strategy. From trying to sell its entire business, which also includes the Jimmy Choo and Michael Kors brands – it focussed on selling specific brands. Versace has now been snapped up but Jimmy Choo was also put up for sale.
The acquisition comes in a period of turbulence as President Trump’s tariff policies could chaos and uncertainty. The Guardian reports that this resulted in a €180m discount on the original amount agreed.
Capri Holdings has owned Versace since 2018. The company was nearly bought by rival fashion behemoth, Tapestry, but the $8.5bn deal was blocked by the US Federal Trade Commission.
In a statement confirming the news, Prada’s group chair and executive director Patrizio Bertelli said the group was “ready and well positioned to write a new page in Versace’s history”. He added that the two companies “share a strong commitment to creativity, craftsmanship and heritage”.
The Prada Group is currently riding the retail storm and has been one of the few businesses to report higher growth this year than last. It reported revenues of €5.4bn in 2024, which was 17% higher than 2023.
Versace is now under the creative direction of Dario Vitale, a former image director at Miu Miu. He succeeded Donatella Versace, who will now be the brand’s chief ambassador.
