The Prada Group acquired Versace yesterday from the American conglomerate Capri Holdings for €1.25 billion, making it the largest luxury fashion deal of the year [1], [2]. Prada will finance the acquisition with over €1 billion in debt, and the deal is expected to close in the second half of the year.
This acquisition marks the end of Capri Holdings’ attempt to create an American luxury powerhouse, with its portfolio including brands such as Michael Kors and Jimmy Choo. Meanwhile, the Prada Group, which owns fashion labels like Prada, Miu Miu, and the luxury pastry brand Marchesi, now competes with luxury giants like LVMH (Louis Vuitton, Moët, etc.) and Kering (Yves Saint Laurent, Gucci, etc.).
Prada and Versace may have different aesthetics, but they share a long history and common origin: both began in Milan, in 1913 and 1978, respectively.
The acquisition also reflects the group’s confidence in the strength of Italian products, despite the instability in international markets due to U.S. President Donald Trump’s tariff policies, according to the ΝYT. In 2024, Prada’s revenue grew by 17% to €5.4 billion, while Versace’s revenue is expected to decrease from $1 billion in 2024 to $810 million this year.
Prada and Versace share long-standing ties through common collaborators and the friendship between key executives Miuccia Prada and Donatella Versace, as well as a shared origin: Prada was founded in Milan in 1913 by Mario Prada, and Versace in 1978 by Gianni Versace. Despite this, their aesthetics differ significantly, with Prada known for its minimalist designs and Versace for its bold baroque-style patterns.
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