By Fashion Editorial Staff
Reshaping the landscape of Italian luxury, Prada Group has announced the acquisition of Versace for €1.25 billion, signaling the union of two of Milan's most iconic fashion houses. The deal, confirmed on April 10, 2025, will see Versace retain its creative identity while benefiting from Prada's operational strength and global reach.
Founded in 1978, Versace has long embodied Italian opulence and stands as a distinctive asset in the luxury landscape. Under Prada Group's ownership, the brand will maintain its creative DNA while gaining access to a more robust infrastructure, ensuring its continued growth and global relevance.
Patrizio Bertelli, Prada Group Chairman and Executive Director, commented:
"We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftmanship and heritage. We aim to continue Versace's legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships. Our organization is ready and well positioned to write a new page in Versace's history, drawing on the Group's values while continuing to execute with confidence and rigorous focus."
Andrea Guerra, Group Chief Executive Officer, added: "The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary. The Group's infrastructure is strong, we have verticalized our brands' organizations and reinforced our routines and processes. We feel ready to open this new chapter. Versace has huge potential. The journey will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus. I would like to thank Capri Holdings for having preserved and enhanced the heritage of this wonderful brand. Notwithstanding the sector uncertainties, we look at the future with confidence, focused on a long-term strategic vision."
A Strategic Evolution
The acquisition of Versace is a pivotal move for Prada, enhancing its standing in the competitive luxury sector. While the two brands differ in creative philosophy — Prada known for its intellectual approach and Versace for its bold designs — their union presents an exciting opportunity for innovation and creative synergy.
With its highly recognizable aesthetic, Versace constitutes a strongly complementary addition to the Prada Group's portfolio and displays significant untapped growth potential leveraging multiple value creation levers. The fashion world will be watching closely as these two legacies come together, with potential new directions that could redefine the future of luxury fashion.
Transaction Details
Under the terms of the agreement, the Prada Group will acquire 100% of Versace for a total Enterprise Value of €1.25 bn ($1.375 bn) on a debt and cash free basis. The transaction will be funded by €1.5 bn of new debt composed of €1.0 bn term-loan and €0.5 bn bridge facility.
The final cash consideration will be determined at closing and is subject to adjustments based on the Net Working Capital and Net Financial Position. The consideration includes significant Tax Losses carry forward; additionally, Capri Holdings will fund certain transaction expenses.
The transaction has been approved by both Prada S.p.A.'s and Capri Holdings' Boards of Directors and is expected to close over the course of the second half of 2025, subject to customary closing conditions, including the receipt of required regulatory approvals.
The Road Ahead
As Versace joins Prada, Miu Miu, Church's, Car Shoe, Pasticceria Marchesi and Luna Rossa in the prestigious Prada Group portfolio, the future promises an exciting blend of heritage and innovation. What's clear is that this acquisition signals an ambitious vision for the future of luxury, where creativity and craftsmanship continue to reign supreme.