Prada to acquire Versace in €1.25 Billion deal; marking major shift in luxury fashion industry

Prada has announced a definitive agreement to acquire Versace from Capri Holdings in a €1.25 billion all-cash transaction. The landmark deal marks one of the biggest consolidations in the fashion industry in recent years.

The acquisition, expected to close in the second half of 2025 pending regulatory approvals, will see Prada take full ownership of the storied Italian fashion house. The move is set to significantly bolster Prada Group’s brand portfolio, which already includes its flagship Prada label and Miu Miu.

Prada will finance the acquisition through €1.5 billion in new debt—comprising a €1 billion term loan and a €500 million bridge facility, while maintaining financial agility. The final transaction value will be subject to standard closing adjustments.

Prada Group Chairman and Executive Director Patrizio Bertelli stated the acquisition as a strategic milestone. Bertelli said that Versace is a brand that perfectly aligns with Prada's vision of fearless in style and rich in heritage.

Versace, founded in 1978 and globally recognized for its provocative and glamorous design, has long stood as a symbol of bold Italian luxury. Prada has stated that Versace will retain its creative independence and unique identity, while benefiting from the group's manufacturing strength and global retail network.

Prada Group CEO Andrea Guerra called the deal a defining moment for the company’s future. “Versace represents enormous potential. We will build on its legacy with care and long-term commitment,” Guerra said.

Capri Holdings, which acquired Versace in 2018 for approximately $2.1 billion, will exit the brand as part of its broader portfolio reshaping amid challenging market conditions. The sale also includes tax loss carry-forwards and transaction costs to be covered by Capri.