Prada Group prepares to scale Versace as acquisition completes

Prada Group has officially completed its acquisition of Versace from Capri Holdings, following regulatory approvals, marking one of the most significant deals in recent luxury fashion history.

The confirmation comes eight months after Capri first announced it had entered into a definitive agreement to sell Versace to Prada Group for $1.375 billion (£1.06 billion) in cash. The deal, finalised today, positions the Milan-based group as a more powerful competitor to European luxury giants such as LVMH and Kering, while cementing Versace’s return to Italian ownership.

Back in April, Capri’s Chairman and CEO John D. Idol described Versace as "an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace," praising the brand’s renewed focus on craftsmanship and luxury positioning under Capri’s stewardship.

Capri originally bought Versace in 2018 for €1.8 billion (£1.49 billion), and the sale forms part of the company’s strategy to strengthen its balance sheet and prioritise investment in Michael Kors.

Prada Group’s CEO, Lorenzo Bertelli, previously expressed confidence in the scale-up ahead, noting: "We believe scaling Versace is going to be a big job, but it’s something we are already prepared to do. The potential is huge… We’re excited to evolve the brand."

Today’s completion now brings Versace officially under the Prada Group umbrella, joining a portfolio that includes Prada, Miu Miu, Church’s, Car Shoe, Pasticceria Marchesi and Luna Rossa. Prada Group, which has outperformed many peers amid the ongoing luxury slowdown, operates across more than 70 countries.

Back in 2023, Tapestry Inc. announced it would acquire rival Capri in a deal valued at $8.5 billion (£6.6 billion). This deal would have married America's two largest luxury houses. Fast forward to 2024: a federal judge blocked the merger following a court order. As a result, Capri hired Barclays Plc to explore options for Versace and Jimmy Choo.

The acquisition also comes during a period of creative transition for the house. As of April, Donatella Versace handed over the Creative Director role to Dario Vitale, taking on a new position as Chief Brand Ambassador focused on philanthropic and charitable efforts.