In a landmark move set to redefine the global fashion hierarchy, Prada Group announced on Thursday its plans to acquire iconic Italian fashion house Versace from US-based Capri Holdings. The acquisition, valued at €1.25 billion (approximately Rs. 125 crores), is subject to regulatory approvals and final adjustments at closing, according to a press release dated April 10.
Prada described Versace as having a “highly recognisable aesthetic” and called the brand “a strongly complementary addition to the Prada Group’s portfolio,” citing significant untapped growth potential across multiple value creation avenues.
The deal marks a bold expansion for the Milan-headquartered group, which owns prestigious labels including Prada, Miu Miu, and luxury shoemaker Church’s. In 2024, the company reported a 17% rise in revenue, reaching €5.4 billion, up from €4.7 billion in 2023. Retail sales alone surged 18% to €4.6 billion, according to figures released by the Associated Press.
Set for completion in the second half of 2025, the acquisition will be funded through €1.5 billion in new debt. Analysts suggest the transaction could shift the balance of power in the global high-street fashion scene and further enhance investor confidence in the growing Prada Group.
The sale comes amid a challenging landscape for Capri Holdings, which has faced valuation pressure in part due to trade tensions stemming from the Trump-era tariffs. Capri had originally acquired Versace in 2018 for $1.83 billion.
Despite distinct brand identities, Prada emphasized that Versace will retain its “creative DNA and cultural authenticity,” while leveraging the full capabilities of Prada Group’s consolidated operations.
“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, craftsmanship, and heritage,” said Patrizio Bertelli, chairman and executive director of Prada Group.
Industry insiders are calling the deal a historic moment in luxury fashion, combining two of Italy’s most storied fashion houses under one powerful banner.
