Prada has completed its $1.38bn acquisition of Versace, a price significantly below the roughly $2bn paid by former owner Capri Holdings in 2018. The deal strengthens Prada’s portfolio – which already includes Miu Miu – as it seeks to sharpen its competitive edge against luxury giants such as LVMH, the group behind Dior, Fendi and Louis Vuitton.
The sale follows a challenging period for Versace. The brand’s revenues slowed alongside those of Capri’s other labels, including Michael Kors and Jimmy Choo, resulting in a loss of around $700m on the original purchase price. During Capri’s tenure, Versace moved away from its famously elaborate aesthetic in favour of a more minimalist direction, while also increasing prices.
Versace also underwent a major creative shift earlier this year. Donatella Versace stepped down in March after 27 years at the fashion house, having taken over in 1997 following the murder of her brother Gianni. She has been succeeded by Dario Vitale, previously design director at Miu Miu.
Prada said it finalised the deal after securing all regulatory approvals. Capri Holdings noted that proceeds from the sale will be used to significantly reduce its debt, with chief executive John D Idol saying this will leave the company on a stronger financial footing. Prada chief executive Andrea Guerra said Versace retains “huge potential”, but emphasised that its revival will require discipline and patience.
