Wed, 03 Dec 2025

Wed, 03 Dec 2025 Italian fashion giant Prada buys Versace – at a discount

The $1.38bn (£1.04bn) deal between the two Italian fashion giants is well below the roughly $2bn Versace was sold for in 2018.
Prada has acquired Versace for $1.38bn, bringing two major Italian luxury fashion brands under one roof. The deal is significantly lower than the $2bn paid by Capri Holdings when they bought Versace in 2018. With this acquisition, Prada expands its portfolio of designer brands and competes with LVMH's extensive collection of luxury labels. Donatella Versace stepped down as creative director in March after a 27-year tenure, replaced by Dario Vitale, formerly design director at Miu Miu. The sale is reportedly at a loss of around $700m, attributed to declining sales and increased prices under Capri Holdings' ownership. Prada has successfully completed the acquisition and received regulatory clearances, with proceeds from the sale going towards debt repayment for Capri Holdings. Andrea Guerra, Prada's CEO, described Versace as having "huge potential" that requires disciplined execution and patience.
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