In a seismic move for the fashion world, Prada Group has announced it will acquire Versace in a blockbuster $1.375 billion all-cash deal, combining two of Italy’s most legendary luxury labels under one global powerhouse.
The agreement, confirmed Thursday morning, sees Capri Holdings — which also owns Michael Kors and Jimmy Choo — selling off its prized asset in what insiders are calling a strategic shift to refocus and strengthen its remaining brands.
The deal is expected to close in the second half of 2025, pending regulatory approval. Once finalized, Versace will join Prada, Miu Miu, Church’s, and Marchesi 1824 in a tightly knit portfolio of heritage-driven fashion icons.
A New Chapter for Versace
“Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace,” said Capri Holdings CEO John D. Idol in a statement. “We have made tremendous progress in repositioning the brand, and we believe Prada Group is the perfect company to guide Versace into its next era.”
For Prada, this is more than a financial acquisition — it’s a statement of cultural dominance.
“We are delighted to welcome Versace,” said Prada chairman Patrizio Bertelli, noting both companies share a deep commitment to creativity, craftsmanship, and heritage. “Our organization is ready and well positioned to write a new page in Versace’s history.”
Why This Matters
- Both Prada and Versace are red carpet staples with global name recognition.
- Versace has been a runway mainstay from Milan to Hollywood, known for bold prints, glamour, and sex appeal.
- Prada brings minimalist prestige and commercial success, particularly through Miu Miu, one of fashion’s fastest-growing labels.
The merger could redefine the power dynamics in European luxury, posing new challenges to rivals like LVMH, Kering, and Richemont.
What Happens to Capri?
Capri Holdings says it will reinvest the proceeds from the sale into Jimmy Choo and Michael Kors, both of which have faced headwinds in recent quarters. Analysts suggest Capri may pivot more toward the accessible luxury and lifestyle space, where American brands are gaining ground.
Fashion Meets Pop Culture
From the Met Gala to movie premieres, both Prada and Versace dominate style headlines. This deal could deepen their influence in Hollywood and beyond, just as brands race to own the cultural conversation across red carpets, influencers, and TikTok fashion trends.
Bottom Line: One of the biggest fashion shakeups in years just unfolded — and the runway wars are only getting started.
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