Prada has agreed to buy the Versace fashion brand for €1.25bn ($1.38bn) from the fashion conglomerate Capri Holdings.
It comes after months of speculation about a potential deal to combine the two Italian fashion houses and, more recently, rumours that the acquisition was set to collapse after market upheaval in response to President Trump’s tariff policies.
Insiders say the original deal was expected to be agreed at €1.43bn, but a discount of about €180m was achieved because the recent market turmoil and trade uncertainty has hit the retail industry particularly hard.
Capri, which also owns Michael Kors and Jimmy Choo, originally bought Versace for $2.1bn in 2018. After an $8.5bn attempt by Tapestry – the American group that owns Coach and Kate Spade – to acquire Capri was blocked last year by the US Federal Trade Commission, Capri has been under pressure to sell off Versace to reduce its debt. According to those close to the deal, Prada was one of the earliest bidders.
In a statement confirming the news, Prada’s group chair and executive director Patrizio Bertelli said the group was “ready and well positioned to write a new page in Versace’s history”. Bertelli added that both companies “share a strong commitment to creativity, craftsmanship and heritage”.
While Capri failed to create an American luxury group to rival fashion companies such as LVMH and Kering, the acquisition hints at an attempt by Prada to strengthen its position as an Italian powerhouse. Versace will join the fashion brands Prada and Miu Miu, the footwear brands Church’s, Car Shoe and Luna Rossa, the America’s Cup sailing team Luna Rossa and the pastry brand Marchesi.
Last month, it was announced that Dario Vitale, a former image director at Miu Miu, would be succeeding Donatella Versace as creative director, a position Versace had held for 27 years. Instead, Versace will take up the role of chief brand ambassador, overseeing the house’s red-carpet dressing and philanthropic work.
