The Prada Group has acquired luxury fashion label Versace for $1.37 billion, consolidating its position among Italy’s premier fashion brands.
MUMBAI – The Prada Group announced on December 2 that it has officially acquired the luxury fashion label Versace in a deal valued at $1.37 billion.
This acquisition means that Versace will now operate alongside Prada and Miu Miu, uniting some of Italy’s most influential fashion brands under one corporate umbrella.
The transaction marks the end of Versace’s ownership under Capri Holdings, the U.S.-based luxury group that managed the brand through the challenging post-pandemic years.
Capri Holdings indicated that the proceeds from the sale will be utilized to repay a significant portion of its debt, thereby enhancing its financial stability and providing greater flexibility for future investments.
John D. Idol, Chairman and CEO of Capri Holdings, stated that the sale is a strategic move to alleviate the company’s debt burden and improve its leverage ratio. He emphasized that Capri will now concentrate on expanding its remaining brands—Michael Kors and Jimmy Choo—and anticipates stabilizing operations this year, with a return to growth expected by fiscal 2027.
Versace has encountered challenges in recent years, including slower retail growth following 2022 and a mixed performance in early 2025.
With this acquisition, Versace will join Prada’s global portfolio, which is renowned for its innovative fashion, meticulous tailoring, and selective distribution strategies.
Industry analysts suggest that this deal could streamline manufacturing, distribution, and pricing strategies across the brands. Additionally, it may provide Versace with improved access to capital and enhanced long-term planning capabilities under Prada’s management.
As the fashion industry continues to evolve, this acquisition represents a significant shift in the luxury market landscape, potentially setting the stage for new growth opportunities for both Prada and Versace.
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