Prada Acquires Versace in Major Luxury Fashion Shake-Up

Prada has officially acquired Versace in a landmark deal worth $1.38bn (£1.04bn), bringing two iconic Italian luxury labels under one umbrella. The purchase price is significantly lower than the nearly $2bn paid by Versace’s former owner, Capri Holdings, in 2018. With this acquisition, Prada strengthens its portfolio—already home to brands like Miu Miu—as competition intensifies against giants such as LVMH, which owns Louis Vuitton, Dior, and Fendi.

The sale comes after a challenging period for Versace. Its long-time creative chief Donatella Versace stepped down in March, ending a 27-year tenure that began after the death of her brother Gianni. She was succeeded by Dario Vitale, previously a design director at Miu Miu. Under Capri Holdings, the brand moved away from its signature ornate aesthetic toward minimalism while raising prices, a strategy that coincided with slowing sales across Capri’s portfolio, including Michael Kors and Jimmy Choo.

Prada said it received all necessary regulatory approvals to finalize the deal. Capri Holdings noted that proceeds will be used to significantly reduce debt, improving its financial position. Prada CEO Andrea Guerra has expressed confidence in Versace’s long-term potential, saying the brand’s next chapter will require “disciplined execution and patience” as it integrates into the Prada Group.

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