Prada has officially completed its long-anticipated acquisition of Versace in a deal valued at approximately $1.4 billion, closing one of the luxury sector’s most significant transactions of the year. The Italian fashion group confirmed the purchase after receiving all regulatory approvals, marking the beginning of a new chapter for both storied houses.
The agreement, first signed in April, transfers Versace from its previous owner, U.S.-based Capri Holdings. The sale followed Capri’s failed attempt to merge with Tapestry, a deal blocked by antitrust regulators. For Prada, the acquisition represents a strategic win in a courtship that insiders say stretched back several years.
Lorenzo Bertelli, son of founders Miuccia Prada and Patrizio Bertelli, has said he will assume the role of executive chairman at Versace when integration is complete. Bertelli noted that discussions with Versace date back to the COVID-19 period and restarted quickly after Capri’s canceled tie-up.
The $1.375 billion all-cash deal strengthens Prada Group’s portfolio, placing Versace’s bold, glamorous identity alongside Prada’s minimalist aesthetic and Miu Miu’s youth-oriented branding. The company has signaled plans to revitalize Versace after uneven performance in recent years, positioning the brand for a new growth phase under Italian ownership.
Capri Holdings said proceeds from the sale will be used to reduce debt and streamline its remaining operations, which include Michael Kors and Jimmy Choo.
Versace’s creative director Donatella Versace publicly endorsed the acquisition, marking the announcement with a tribute to her late brother and brand founder, Gianni Versace. Sharing an archival photograph of Gianni and Miuccia Prada, she wrote that the day carried both symbolic and emotional weight as the brand entered the Prada family.
Prada Pursued Versace
Prada’s move underscores the accelerating consolidation within the global luxury sector, where scale, supply chain efficiency, and brand diversification have become competitive imperatives.
Versace brings a globally recognized name, a deep heritage, and strong potential for revitalization. Prada has long viewed the label as a natural complement to its portfolio, offering stylistic contrast and cross-market appeal. As previously covered, demand for high-end fashion has rebounded unevenly in the post-pandemic era, elevating the importance of brand strength and operational resilience.
The acquisition also bolsters Prada’s position against larger European luxury conglomerates, particularly LVMH and Kering, which have expanded aggressively through high-profile purchases.
Luxury Markets and Investors
For the luxury industry, the takeover signals renewed confidence in brand-led expansion and Italian craftsmanship. Prada plans to focus on operational integration, retail optimization, and product refinement to restore Versace’s momentum. Analysts expect increased investment in accessories, leather goods, and high-margin categories.
Investors view the acquisition as a strategic bet on long-term synergies between the brands, though the near-term focus remains on execution and restructuring. Capri Holdings, meanwhile, gains financial breathing room as it reorients its business, while Prada positions itself for greater global influence.
The combined group is now one of the most prominent Italian-led forces in global luxury — a rarity in an industry dominated by French conglomerates — and could influence further consolidation trends across Europe.
