Prada has officially announced the acquisition of iconic fashion house Versace. The deal, valued at around $1.4 billion in cash, was confirmed by Prada on Thursday. The move signals a major shift in the global luxury fashion industry and marks a historic moment for the 112-year-old Italian brand.
Patrizio Bertelli, chairman and executive director of the Prada Group, expressed enthusiasm about the acquisition. "We are delighted to welcome Versace to the Prada Group," he said. "We share a strong commitment to creativity, craftsmanship, and heritage."
Versace was previously owned by Capri Holdings, a U.S.-based company that also owns Michael Kors and Jimmy Choo. Capri had acquired Versace in 2018 for $2.1 billion. At that time, the Versace family held 80% of the brand, with the remaining 20% owned by investment firm BlackRock.
However, recent shifts in fashion preferences affected Versace's popularity. Consumers have moved toward "quiet luxury," favoring more minimalist and understated styles. Versace, known for bold and flashy designs, struggled to keep up with changing tastes.
As a result, Versace experienced a decline in sales. Facing economic pressure and trade tensions, Capri Holdings decided to put the brand on the market. Exclusive talks between Prada and Capri began in February this year.
The ongoing trade tariffs and economic uncertainty, especially during Donald Trump's presidency, reportedly forced Capri to accept a lower sale price than it had paid six years ago.
Prada, based in Milan and led by designer Miuccia Prada and her husband Patrizio Bertelli, said the transaction is expected to close in the second half of this year. This acquisition is the biggest in Prada's long history.
Bloomberg had earlier hinted at the deal on March 2, saying Prada was close to sealing it. Now that it's confirmed, the fashion world is buzzing with reactions.
With this move, Versace returns to Italian ownership. The acquisition is expected to boost Prada's global standing, allowing it to compete more effectively with luxury giants such as LVMH and Kering.
For Versace, this could be the beginning of a revival. Under Capri's ownership, the brand faced difficulties adjusting to market demands. Prada's guidance may offer it a clearer direction and renewed identity.
Versace's leadership has also seen big changes. Donatella Versace, sister of founder Gianni Versace, stepped down as creative director last month. She had led the brand since 1997, following Gianni's tragic death.
Donatella, who turns 70 in May, has now taken on the role of chief ambassador for the brand. Her departure from the creative helm was seen by many as a key step toward new ownership.
She has been succeeded by Dario Vitale, a rising name in fashion. Vitale is known for his work at Miu Miu, Prada's sister label that targets younger audiences. His appointment could signal a shift toward a fresher and more modern approach at Versace.
Gianni Versace founded the label in 1978. Over the decades, the brand became synonymous with high glamour, gold accents, and bold prints. Its designs were worn by stars and shaped red-carpet fashion.
Prada's acquisition offers a new path for Versace. By returning to its Italian roots and getting leadership support from a globally respected group, the brand may find renewed strength.
In the coming months, the fashion world will closely watch how Prada and Versace blend their styles and strategies. The partnership could redefine the future of Italian luxury and set new trends in the global market.
For now, the deal signals a strong message: heritage, innovation, and unity in style can still shape the industry—even in uncertain times.
