What: Prada Group acquires Versace from Capri Holdings for EUR 1.25 billion, marking a strategic consolidation of two iconic Italian luxury houses under single ownership.

Why it is important: The deal reshapes the luxury landscape by bringing together two prestigious Italian houses, reflecting the industry's move toward strategic partnerships that preserve brand heritage while creating operational synergies.

Prada Group has finalised its acquisition of Versace from Capri Holdings for EUR 1.25 billion, concluding months of speculation and exclusive negotiations. The transaction will be funded through EUR 1.5 billion of new debt, comprising a EUR 1 billion term loan and a EUR 500 million bridge facility. Prada Group's chairman Patrizio Bertelli emphasised their commitment to preserving Versace's legacy while providing a robust platform for growth, supported by ongoing investments and established relationships. The deal marks a significant evolution for Prada Group, adding a complementary dimension to their portfolio. The transition includes key leadership changes, with Donatella Versace, who previously sold the family company to Michael Kors Holdings (later Capri) for USD 2.1 billion in 2018, assuming the role of chief brand ambassador. Effective April 1, former Miu Miu executive Dario Vitale has been appointed as chief creative officer. The transaction is expected to close in the second half of 2025, subject to regulatory approvals. Prada's acquisition of Versace for EUR 1.25 billion represents a significant shift in luxury market consolidation strategy. This deal emerges in the wake of the failed Tapestry-Capri merger in November 2024, which faced regulatory challenges and ultimately led Capri Holdings to explore individual brand sales. The transaction's structure and timing are particularly notable given the broader industry context of January 2025, where focused acquisitions have become preferred over cross-segment mergers. This approach aligns with the luxury sector's recent transformation, as evidenced by December 2024's developments, where successful deals like Mytheresa's acquisition of YNAP demonstrated the effectiveness of targeted strategic combinations. The Prada-Versace deal thus represents a new model of luxury consolidation, focusing on brand compatibility and operational synergies rather than mere market share expansion.

Prada acquires Versace for €1.25 Billion