In a significant move within the luxury fashion industry, Italian conglomerate Prada Group has announced a definitive agreement to acquire Versace from the US-based Capri Holdings Limited for US $ 1.37 billion in cash. The deal is expected to finalise in the second half of 2025, subject to regulatory approvals. This acquisition will see Prada Group, owner of the Prada and Miu Miu brands, create a larger Italian luxury entity poised to compete more directly with industry giants like LVMH and Kering.
Capri Holdings, which purchased Versace in 2018 for approximately US $ 2.05 billion, stated that the sale will bolster its financial position and enable “accelerated strategic investments in Michael Kors,” another brand within its portfolio.
John D. Idol, Capri’s Chairman and Chief Executive Officer, lauded the progress made in repositioning Versace over the past six years, emphasising its enhanced luxury heritage and craftsmanship under Donatella Versace’s creative vision.
During a webcast, Prada Group’s CMO Lorenzo Bertelli acknowledged the significant task of scaling Versace but affirmed the company’s readiness and belief in the brand’s “huge” potential. He stated that they had the knowledge and information to make the brand successful in the long run and that they were excited to evolve the brand.
The acquisition comes at a time when Prada Group has shown resilience in the luxury market, reporting a 15 per cent increase in net revenue for the third quarter of 2024, bucking the slowdown experienced by competitors like LVMH and Kering. In contrast, Capri Holdings reported a 16.4 per cent decline in revenue during the second quarter of Fiscal 2025, which was indicative of the general downturn in luxury.
The backdrop to this deal includes a previously blocked merger between Capri and Tapestry Inc. in 2023, a deal valued at US $ 8.5 billion that would have united two of America’s largest luxury houses. According to reports, Capri engaged Barclays Plc to investigate possibilities for its Versace and Jimmy Choo brands after the court block.
Adding another layer to the transition, it was recently announced that Donatella Versace is stepping down as Creative Director, handing the reins to Dario Vitale. Prada clarified during the webcast that they had no involvement in selecting the new Creative Director but expressed confidence in his ability to lead Versace’s next chapter. Donatella Versace took on the position of Chief Brand Ambassador on 1st April, concentrating on charity and philanthropic activities for the Versace brand.
