Prada Acquires Versace for €1.25 Billion, Creating a New Italian Luxury Champion
The Prada fashion house has concluded a definitive agreement to acquire its rival Versace for €1.25 billion. The operation, validated by the boards of directors of Prada and Capri Holdings, is expected to be finalized in the second half of 2025.
This acquisition marks a major turning point in the Italian fashion industry. Contrary to recent years, where brands like Gucci, Fendi, or Bottega Veneta have been acquired by French companies, this merger gives birth to a new 100% Italian luxury champion, with a combined revenue of over €6 billion. Prada aims to compete with global giants LVMH and Kering.
Versace, founded in 1978 by Gianni and Santo Versace, was acquired in 2018 by Capri Holdings for €1.83 billion. This resale at a loss is explained by the global slowdown of the luxury market and the increase in American customs duties, which have weighed on the group's valuation. Versace was then owned 80% by the founding family and 20% by the BlackRock fund.
In March 2025, the Versace house had already begun a transition by appointing Dario Vitale, former director of Miu Miu – Prada's young brand – as head of creation. He succeeds Donatella Versace, who has led the house since her brother's death in 1997 and retired on April 1st.
