Prada Acquires Versace in $1.4 Billion Power Move—What to Know About the Fashion Takeover

On Thursday, news spread in the U.S. that Prada agreed to buy Versace, the Italian rival fashion house, in a deal valued at 1.25 billion euros (1.4 billion). The move has been approved by the Prada and Capri Holdings board of directors. AP News reports that Prada has outpaced Versace in recent years, thanks to younger fashion lovers.

The deal will now combine both brands. Each is historically known for having different styles.

Prada Chief Marketing Officer Lorenzo Bertelli says, “This is exactly the strength for our group. There are no overlaps in terms of creativity, in terms of customer.” In a previous AP News report, Prada said the addition of Versace’s “highly recognizable aesthetic … constitutes a strongly complementary addition” to its portfolio, which includes the Prada and Miu Miu fashion brands. Stating that the Milan-based Versace offered “significant untapped growth potential.’’

The parties will adjust the final value of the deal at closing, which they expect to take place in the second half of the year.

More on Prada

Prada, founded by Mario Prada over 112 years ago, is also an Italian luxury fashion house. Widely known for its use of nylon, aesthetics, craftsmanship, and innovative approach. 

Starting as a leather goods store in Milan, the brand with the triangle logo expanded into fashion, footwear, and accessories.

“Versace will maintain its creative DNA and cultural authenticity, while benefitting from the full strength of the Group’s considerable consolidated platform, including industrial capabilities, retail execution and operational expertise,’’ Prada said in a statement.

History of Capri Holdings and Versace

Donatella is now the Chief Brand Ambassador. Capri Holdings says Ms. Versace will dedicate herself to the support of Versace’s philanthropic and charitable endeavors and will remain an advocate for the brand globally.

Donatella Versace said, “Championing the next generation of designers has always been important to me. I am thrilled that Dario Vitale will be joining us, and excited to see Versace through new eyes. I want to thank my incredible design team and all the employees at Versace that I have had the privilege of working with for over three decades. It has been the greatest honor of my life to carry on my brother Gianni’s legacy. He was the true genius, but I hope I have some of his spirit and tenacity. In my new role as Chief Brand Ambassador, I will remain Versace’s most passionate supporter. Versace is in my DNA and always in my heart.”

The global fashion luxury group consists of iconic brands like Versace, Jimmy Choo, and Michael Kors.

Born in Milan in 1978, Versace made a name for itself with its bold style and attention to detail—now it’s one of the top players in the global fashion scene.

Over the years, Versace has expanded to offer fashion, accessories, and home goods through a global retail network. Includes boutiques, e-commerce sites, department stores, and specialty stores worldwide.

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”

Behind the Money

The Prada Group—which owns Prada, Miu Miu and Church’s—had a pretty strong year. They saw their revenues jump 17 percent, hitting 5.4 billion euros (about $5.7 billion), up from 4.7 billion euros in 2023. Retail sales alone climbed 18 percent, reaching 4.6 billion euros.

Prada, their flagship brand, saw sales grow by a steady four percent. But it was Miu Miu that stole the spotlight, with sales nearly doubling.