The Italian Fashion House Prada announced on Thursday, April 10 that it had reached an agreement with the American group Capri Holdings to buy its striking rival Versace for 1.25 billion euros. The acquisition will create a luxury group with income or more than 6 billion euros that could improve with industry giants such as French conglomerates LVMH and the owner of Gucci Kering, amid a slowdown in the sector around the world.
“We are delighted to welcome Versace to the Prada group and build a new chapter for a brand with which we share a strong commitment to creativity, crafts and inheritance,” said the president and executive director of Prada, Patrizio Bertelli, in a statement.
In 2018, Capri paid 1.83 billion euros to acquire Versace, which was prior to 80% by the Versace family and 20% for the United States investment fund Blackrock. Amid the decrease in sales on the label with headquarters in Milan, he put Versace for sale and began exclusive negotiations with Prada at the end of February.
Capri, who also owns Jimmy Choo and Michael Kors, had to accept a small price of Prada amid the market agitation caused by the rates of the president of the United States, Donald Trump. He Financial Times He informed that initially the price was expected to be approximately $ 1.6 billion, but had negotiated the leg down in recent days. Last month, Donatella Versace resigned as creative director after more than 30 years, a movement widely seen as a prelude to the agreement. He played in 1997 after the murder of his older brother Gianni, who founded the label in 1978. But on April 1, Dario Vitale replaced her as creative director, who has supervised sales in Miu Miu Mi, sister of Pradaa. Donatella Versace, who turns 70 in May, is now the ambassador of the main brand of the label.
A long trip
While it is still a label associated with the jet set, part of Versace’s brightness has decreased in recent years. He published $ 193 million in income in his third fiscal quarter 2025, 15%less. On the contrary, Prada, under the creative helmet of Miuccia Prada, the grandfather of the founder of the Mario Group, 76, has a robust health. Despite the global deceleration in sales of luxury goods, Prada’s net profit increased 25% to € 839 million in 2024, with 15% revenue to 5.4 billion euros.
Andrea Guerra, executive director of the Prada Group, said Thursday that Versace had “great potential”, but warned that there was a job to do. “The trip will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus,” he said.
The agreement is expected, financed for 1.5 billion euros of new debt, closing in the second half of 2025.
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