Prada Group has acquired Versace

Prada Group announced today the acquisition of Versace from Capri Holdings for €1.25 billion, pending final approval. The deal marks a historic moment for one of the most iconic Italian fashion houses, now making Prada Group one of Europe’s luxury giants. «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, craftsmanship and heritage. We aim to continue Versace’s legacy by celebrating and reinterpreting its bold and timeless aesthetic; at the same time, we will provide the brand with a solid platform, strengthened by years of ongoing investments and rooted in long-standing relationships. Our organisation is ready and well positioned to write a new page in Versace’s history, drawing on the Group’s values and continuing to act with confidence and rigour», said Patrizio Bertelli, Chairman and CEO of the Prada Group. The transaction was concluded at a price lower than initial expectations. The deal was originally estimated at around €1.6 billion, but, as reported yesterday by the Financial Times, it was renegotiated downwards in recent days, with a discount of over €200 million, following the chaos caused by U.S. tariffs, which negatively impacted Versace’s business outlook.

In 2019, Versace was acquired by Capri Holdings (then Michael Kors Holdings) for over $2.1 billion, or about €1.83 billion, with the intention of turning it into the crown jewel of a new luxury conglomerate. Those ambitions, however, never materialized – due to both internal tensions between the brand's management and Capri Holdings, as reported by the WSJ; and a failed push for elevation, compounded by internal issues that, after the $8.5 billion merger between Capri and Tapestry was blocked by the U.S. Federal Trade Commission, delivered a final blow to the group, which decided to offload its heaviest assets and focus on the more American and profitable segment of its business. For a short time, it was even speculated that Prada Group would acquire Jimmy Choo along with Versace as part of the same deal. Evidently, that part of the agreement did not materialize. This “return” of the brand to Italy comes after Donatella Versace stepped down as creative director and was replaced by Dario Vitale, former design director of Miu Miu, whose appointment at the time of the announcement was already seen as a clear sign of the impending acquisition.