In a landmark deal that reshapes the landscape of Italian luxury, Prada has officially acquired Versace from Capri Holdings for $1.375 billion, including debt. This strategic move unites two of Italy’s most iconic fashion houses under one banner, promising a bold future for the global luxury market. Prada, known for its minimalist aesthetic, has remained resilient amidst a slowdown in global luxury spending. On the other hand, Versace, with its daring baroque designs, has struggled in recent quarters. The acquisition represents a blending of contrasts and a shared vision for elevating Italian fashion on the global stage.
Prada Chairman Patrizio Bertelli expressed his commitment to honoring Versace’s legacy while offering the brand a robust platform for growth. “We aim to continue Versace’s legacy, celebrating and reinterpreting its bold and timeless aesthetic,” he stated.
The acquisition comes shortly after Donatella Versace’s announcement in March that she would step down as Chief Creative Officer. Donatella shared her admiration for Prada and expressed confidence in the brand’s new direction under the leadership of Patrizio Bertelli and Miuccia Prada. “I am honored to have the brand in the hands of such a trusted Italian family business,” she said.
Interestingly, Prada’s purchase price is lower than the $2.15 billion Capri Holdings paid for Versace in 2018. The transaction is financed with €1.5 billion in new debt, marking Prada’s most significant deal since its late 1990s acquisitions of Helmut Lang and Jil Sander.
While Capri Holdings highlighted that the sale would strengthen their balance sheet and support future growth for Michael Kors and Jimmy Choo, the market’s reaction has been mixed, with Capri shares dropping 3% following the announcement.
This acquisition underscores Italy’s growing influence in a luxury market often dominated by French conglomerates like LVMH. As Prada and Versace unite their legacies and visions, the fashion world eagerly anticipates how this partnership will redefine the industry.
