Prada to acquire Versace, closes deal for around $1.4 billion as per reports

Word on the street is that Prada has finalized plans to acquire luxury fashion brand Versace from its owner, Capri Holdings, for over a billion dollars. Versace’s parent company announced via a press release dated April 10, 2025, that it had entered into definitive agreements to sell the Italian brand to its fellow Italian, Prada, for $1.375 billion in cash.

The deal is expected to close in the second half of 2025 and is subject to regulatory approvals and customary closing conditions. The Executive Chairman and Chief Executive Officer of Capri Holdings described the Versace brand as one that is well-positioned for sustainable growth, and the Prada company as one that would guide its Italian counterpart to further success:

"Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace. Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship,"

He added:

"Through elevated product, marketing and store enhancements, the brand is now well-positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”

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More details on Versace’s sale to the Prada company

The deal comes after Donatella Versace announced on March 13, 2025, that she was stepping down as the brand's creative director—a role she held after the brand was founded by her late brother, Gianni. The iconic designer had sold Versace in January 2019 to Capri Holdings.

She has praised the new partnership:

“Gianni and I have always had a huge admiration for Miuccia, Patrizio and their family. I am honored to have the brand in the hands of such a trusted Italian family business, and I am ready to support this new era for the brand in any way that I can,”

Prada Chairman Patrizio Bertelli stated that his brand hopes to continue Versace’s legacy and provide the label with a strong platform:

"We aim to continue Versace’s legacy, celebrating and re-interpreting its bold and timeless aesthetic. At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships,”

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According to CNBC, Versace was initially valued at around $1.7 billion, but that figure was reduced due to recent turmoil over market tariffs. The joining of the Italian fashion houses is expected to bolster their strength in a fashion industry dominated by French luxury brands.