Luxury fashion brand Prada has agreed to buy smaller rival Versace from Capri Holdings in a deal worth $1.375 billion, including debt. The move is expected to strengthen Italy’s hand in the luxury industry, which is dominated by French conglomerates such as LVMH.
Prada is seeking to expand and capitalize on growing demand for luxury goods despite a slowdown in the sector. Versace, on the other hand, has been operating at a loss in recent quarters. The deal comes after Donatella Versace stepped down as chief creative officer of the brand, which was founded by her late brother Gianni.
Prada Chairman Patrizio Bertelli stated that the company aims to continue Versace’s legacy while providing it with a strong platform for growth. He expressed confidence in the partnership, citing longstanding relationships and ongoing investments. Donatella Versace praised the new partnership, saying she is honored to have the brand in the hands of an Italian family business.
The deal marks a significant shift for Prada, which has largely avoided major acquisitions since the end of the 1990s. However, it comes at a time when several other luxury brands have been impacted by global market uncertainty and recession fears triggered by US President Donald Trump’s new tariffs.
Source: https://edition.cnn.com/2025/04/10/style/prada-group-acquires-versace/index.html