Editor’s Note
This article details the landmark acquisition of Versace by the Prada Group, a €1.25–1.3 billion deal that consolidates two iconic Italian fashion houses. It examines the strategic implications for the global luxury sector.
On December 2, 2025, the Prada Group officially completed its long-planned acquisition of Milanese rival Versace, closing a deal valued at around €1.25–1.3 billion (roughly $1.38–$1.4 billion). The transaction unites two of Italy’s most famous fashion houses under one corporate roof: Prada and its youth-driven sister brand Miu Miu on one side, and Versace, the emblem of maximalist glamour, on the other. It’s being hailed by analysts as a defining moment for Italian luxury—and a direct challenge to French giants like LVMH and Kering.
Prada is acquiring 100% of Versace from U.S.-listed Capri Holdings in an all-cash transaction. The original definitive agreement, signed on April 10, 2025, valued Versace at an enterprise value of €1.25 billion ($1.375 billion) on a debt- and cash-free basis, funded largely by €1.5 billion in new debt.
When the deal was announced, Prada said that, on a pro-forma basis, Versace will account for about 13% of group revenues, with the Prada label contributing 64% and Miu Miu around 22%. Those proportions sit on top of a business that has been unusually resilient in a luxury slowdown: 2024 Prada Group revenues were €5.4 billion, up 17% year-on-year, driven by a record year at Miu Miu. For the first nine months of 2025, sales were up 9% to €4 billion, marking 19 consecutive quarters of growth.
The sale is striking not just because of who’s buying, but because of how much Capri is accepting. Capri Holdings bought Versace in 2018 for about $2.0–2.15 billion, including debt. Prada is now paying around €1.25 billion (~$1.38 billion) for the brand—a haircut of roughly one-third in dollar terms.
Behind that markdown is a brand that has been culturally prominent but commercially underpowered: Versace’s revenues have declined about 15% over the past year and the label has posted consistent revenue and profit losses since Q3 2024, according to Capri’s disclosures and industry reporting. Versace represented around 20% of Capri’s 2024 revenue of €5.2 billion, but with weaker profitability than Michael Kors or Jimmy Choo.
For Prada, this is not an opportunistic bargain-hunt; it’s the culmination of a long courtship. Lorenzo Bertelli—Prada heir, group marketing chief and head of sustainability—has said publicly that Prada was in conversation about acquiring Versace as far back as the COVID-era, and looked again when Capri’s planned deal with Tapestry fell apart.
Other motivations include:
• Complementary aesthetics and audiences. Prada’s reputation for “ugly chic” and intellectual minimalism sits at the opposite pole from Versace’s body-con glitz and baroque prints, minimizing direct cannibalization across customer bases.
• Italian scale vs French super-groups. With Versace alongside Prada and Miu Miu, the Prada Group starts to look more like an Italian answer to LVMH and Kering—especially important in a year when French luxury has shown vulnerability.
• Proven transformation playbook. Prada’s revitalization of Miu Miu—where retail sales surged 93% in 2024 and crossed €1 billion—gives management a recent template for turning a high-awareness but under-monetized brand into a growth engine.
In short: Versace gives Prada a globally famous “volume knob” it can turn up, using the group’s financial strength and industrial backbone.
