2 weeks ago
70
Prada's acquisition of Versace from Capri Holdings for $1.375 billion marks a significant consolidation in Italian fashion. This strategic move aims to bolster Italy's presence in the global luxury market, challenging French dominance. Prada seeks to revitalize the financially struggling Versace, leveraging its established platform.
In a landmark move for
Italian fashion
, Prada has announced its acquisition of iconic rival
Versace
from
Capri Holdings
in a deal valued at $1.375 billion. The strategic takeover not only unites two of Italy’s most influential fashion houses but also strengthens the country’s position in a global
luxury market
long dominated by French giants like LVMH and Kering.
Prada, which has managed to defy the recent downturn in luxury demand, is aiming to scale its operations. Versace, on the other hand, has been struggling financially, operating at a loss in recent quarters. The acquisition is expected to give the brand a fresh runway for revival under the stewardship of one of Italy’s most established fashion groups.
“We aim to continue Versace’s legacy by celebrating and reinterpreting its bold and timeless aesthetic,” said Prada Chairman Patrizio Bertelli. “At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”
The agreed price is notably lower than the $2.15 billion (including debt) that Capri Holdings paid when it acquired Versace in 2018 from the Versace family and Blackstone. The deal, which also includes Versace’s debt, reflects the brand’s recent performance challenges amid a global luxury slowdown.
Prada’s acquisition forms a powerful multi-brand luxury group, positioning it to better compete with French conglomerates and expanding its influence in high fashion. Talks between Capri and Prada reportedly began in February, culminating in this high-stakes industry shift.
Andrea Guerra, CEO of Prada, remarked, “Versace has huge potential. The journey ahead will be long and will require disciplined execution and patience.”
Capri Holdings, which also owns Jimmy Choo and Michael Kors, is now set to streamline its portfolio following the Versace sale.
Kim Soo-Hyun’s CHEATING History EXPOSED; Was The Actor Dating Two K-Pop Rivals At Once? | WATCH
The transition comes shortly after a major leadership shift at Versace. In March, Donatella Versace stepped down from her creative director role after nearly three decades, taking on a new title as Chief Brand Ambassador. Dario Vitale, former design and image director at Miu Miu, now leads the brand as its Chief Creative Officer.
As Versace begins this new chapter under Prada’s umbrella, the fashion world is watching to see how this Italian alliance reshapes the luxury landscape.
English (US)