Prada Group to Acquire Versace in €1.25 Billion Deal

MILAN, Italy — In a landmark move within the luxury fashion world, the Prada Group has announced plans to acquire iconic Italian fashion house Versace from U.S.-based Capri Holdings in a deal valued at €1.25 billion (approximately $1.4 billion).

The acquisition, revealed on Thursday, marks a significant shift for Versace, which has been under the ownership of Capri Holdings — the parent company of Michael Kors and Jimmy Choo — since 2018. The deal is expected to close in the second half of 2025, pending regulatory approvals, and will be financed through €1.5 billion in new debt. Both Prada’s and Capri Holdings’ boards have approved the transaction.

Prada described Versace as a “highly recognizable aesthetic” that offers “significant untapped growth potential.” The group added that the acquisition is a “strongly complementary addition” to its portfolio, which already includes powerhouse brands such as Prada and the youth-driven Miu Miu.

“Versace will maintain its creative DNA and cultural authenticity, while benefitting from the full strength of the Group’s considerable consolidated platform, including industrial capabilities, retail execution, and operational expertise,” Prada said in a statement.

Versace, founded in 1978 by the late Gianni Versace, has long been a symbol of bold, sensual Italian fashion. However, Capri Holdings has struggled in recent years to reposition the brand amid the rising trend of “quiet luxury,” which has shifted consumer focus away from Versace’s traditionally flamboyant style.

The acquisition comes just weeks after Capri appointed Dario Vitale — previously with Miu Miu — as Versace’s new creative director, replacing Donatella Versace. Donatella, who took over after her brother’s tragic death in 1997, has now assumed the role of chief brand ambassador.

Industry insiders view the leadership change and sale as a strategic move to reinvigorate the Versace brand under Prada’s stewardship. Miuccia Prada previously hinted at interest in the brand during Milan Fashion Week in February, a signal many believe foreshadowed this acquisition.

With this latest move, the Prada Group solidifies its position as one of the dominant forces in global luxury fashion — and sets the stage for a new era of growth for Versace.