Prada Finalises Cut-Price Acquisition of Versace in Major Italian Fashion Shake-Up
Prada has officially taken ownership of Versace, sealing a $1.38bn (£1.04bn) deal that brings two of Italy’s most recognisable luxury labels under the same corporate umbrella. The price represents a steep drop from the nearly $2bn Capri Holdings paid when it bought Versace in 2018.
The acquisition strengthens Prada Group’s roster – which already includes Miu Miu – as it steps up competition with global giants such as LVMH, owner of Louis Vuitton, Dior and Fendi. Industry analysts say the move positions Prada to broaden its influence in the high-end fashion sector at a time when consolidation is reshaping the global luxury landscape.
Versace, famous for its bold designs and Medusa emblem, has been in transition since Donatella Versace stepped down as creative chief in March after nearly three decades at the helm. She succeeded her brother Gianni in 1997 following his murder, and was recently replaced by Dario Vitale, formerly a design director at Miu Miu.
Capri Holdings opted to sell the struggling brand at a loss of roughly $700m as slowing sales across Versace, Michael Kors and Jimmy Choo weighed on its balance sheet. During Capri’s ownership, Versace moved away from its signature opulent aesthetic toward a more understated look, even as prices continued to rise.
Prada confirmed on Tuesday that it had completed the takeover after receiving all necessary regulatory approvals. Capri Holdings said the funds from the sale will be used to significantly reduce its debt obligations.
“We plan to use the proceeds to repay the majority of our debt, which will substantially strengthen our balance sheet,” Capri chief executive John D. Idol said.
Prada’s chief executive Andrea Guerra has previously described Versace as a brand with “huge potential,” but cautioned that unlocking it will require sustained effort.
“The journey will be long and will require disciplined execution and patience,” he said.
