Prada Group Officially Acquires Versace

The €1.25 billion agreement incorporates the Italian luxury brand into the Prada and Miu Miu portfolio.

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Following months of speculation and internal discussions, the Italian luxury conglomerate Prada Group has formally acquired Versace from Capri Holdings. Versace will be incorporated into the company's portfolio of premier brands, including Prada and Miu Miu, for a sum of €1.25 billion. The announcement follows the resignation of former artistic director and Versace family member Donatella Versace, with the house appointing Dario Vitale, who previously spent 14 years at Prada Group.

The Prada Group's acquisition has occurred during a turbulent phase for the entire industry. 2024 was a particularly tumultuous year for the luxury sector as expenditure declined and customer confidence fell. Versace saw a significant decline, citing a 15% decrease in sales in the last quarter, whilst Prada Group achieved remarkable success with an 18% year-over-year sales gain across all its brands.

Although Prada and Versace differ stylistically, the business stated, “the brand represents a highly complementary enhancement to the Prada Group’s portfolio and exhibits substantial untapped growth potential by utilising various value creation mechanisms,” in an official announcement. While Prada has cultivated a more sophisticated and understated design under the guidance of Miuccia Prada and Raf Simons, Versace has preserved the maximalist and lavish style established by founder Gianni Versace and furthered by his sister's leadership. “Within the Prada Group, Versace will preserve its creative essence and cultural integrity, while leveraging the comprehensive advantages of the Group’s established platform, encompassing industrial capabilities, retail execution, and operational proficiency,” the business stated.

In January, some individuals were astonished when the Italian newspaper Il Sole 24 Ore published a report regarding a prospective acquisition of Versace by the Prada Group. In late February, it was announced that Prada Group commenced a comprehensive evaluation of Versace and was contemplating a bid for the brand. In March, Business of Fashion announced that Prada had consented to a valuation of almost €1.5 billion EUR ($1.6 billion USD). With the agreement now finalised, the extent to which Versace may assimilate into the cohesive Prada brand family remains to be determined.