Luxury fashion house Prada has announced its acquisition of Versace in a €1.25 billion deal, bringing together two of Italy’s most renowned brands. The purchase includes 100% of Versace, previously owned by Capri Holdings, which acquired the company in 2018 for €2 billion.
Versace, founded in 1978 by Gianni Versace, is known for its bold designs and distinctive patterns. Donatella Versace, who has led the brand since 1997, recently stepped down from her executive role but remains as chief brand ambassador, with Dario Vitale taking over as design director.
Prada plans to finance the acquisition through €1.5 billion in new debt, including a €1 billion loan and a €500 million bridge facility. Despite market uncertainties in the luxury sector, Prada sees significant potential for Versace’s growth, aiming for a long-term brand evolution strategy. The deal is expected to be finalized in the second half of 2025, with Capri Holdings shifting focus to strengthening its Michael Kors brand and improving financial stability.