Prada Acquires Versace for $1.4 Billion

A logo of Prada is seen at a store.

The Prada Group announced a deal to buy Versace from Capri Holdings under terms that value the brand at $1.4 billion. The 47-year-old Versace brand, known for its sexy silhouettes and bold Greco and Medusa motifs, will be put under the same roof as Prada's "ugly chic" aesthetic and youth-driven Miu Miu.

“This is exactly the strength for our group. There are no overlaps in terms of creativity, in terms of customer,” said Lorenzo Bertelli, Prada’s chief marketing officer.

“We are buying a brand with huge potential, with a very recognizable aesthetic," Lorenzo Bertelli said, underlining that the Versace brand name recognition, putting it among the top 10 in the world, far outweighs its business performance.

The deal is expected to be funded by 1.5 billion euros in new debt and has been approved by the Prada and Capri Holdings board of directors. Prada Chief Executive Andrea Guerra said the deal was aimed at building a “sustainable revenue growth” and boosting the brand's identity, and was not about squeezing synergies.

Prada's statement underlined that Versace will “maintain its creative DNA and cultural authenticity,” while benefitting from its “industrial capabilities, retail execution and operations expertise.”

Lorenzo Bertelli said the experience of Miu Miu's growth had shown that small changes can make all the difference. “We don't need to change the brand, revolutionize it. We need to just evolve it, make the right things happen, and all together they are hopefully going to bring a huge spark and bring back Versace to be a huge success,” he said.

Capri Holdings paid $2 billion for Versace in 2018, but had been struggling to position Versace’s bold profile in the recent era of “quiet luxury.”

Versace represented 20% of Capri Holdings 2024 revenue of 5.2 billion euros.

Donatella Versace, who took over as creative director at the fashion house founded by her brother, Gianni Versace, after his 1997 murder, continues with the fashion house in the new role of chief brand ambassador.

“I am absolutely delighted to become part of the Prada family,” she wrote in a post on Instagram beneath a photograph of herself and Miuccia Prada. “I am honored to have the brand in the hands of such a trusted Italian family business, and I am ready to support this new era for the brand in any way I can.”

The Italian government welcomed a deal that appears to secure Versace's longer term future as other family-owned fashion brands have faltered or even disappeared after opening up to outside investors.

"An historic ‘Made in Italy’ brand is Italian again," Industry Minister Adolfo Urso said.