The long awaited has finally arrived white smoke: Prada Acquires Versace for €1,25 Billion. After months of negotiations and speculation,'final agreement has been reached, with the acquisition of 100% of the Milanese fashion house by the Prada group, which concluded thetransaction with Capri Holdings Ltd., owner of Versace. This closes a circle after a period of uncertainty, with rumours of agreements falling through that had been circulating until yesterday, when the Wall Street Journal he even spoke of a possible breakdown in negotiations.
The operation marks a turning point not only for the two luxury giants, but also for the Italian fashion scene ready to compete with LVMH and Kering. With this move, Prada not only strengthens its portfolio, but further consolidates its leadership in the global luxury sector, bringing another important piece of Made in Italy back under Italian hands.
The Road to Acquisition of Versace
Il walk which led to the acquisition of Versace it was not without its difficulties. In 2018, Versace had been acquired by Capri Holdings for 1,83 billion euros, but in the following years it failed to achieve the expected results. After the passage under the control of Capri, the maison did not replicate the hoped-for success, due to a series of factors, including changing consumer tastes, which have moved towards more discreet and less ostentatious luxury, and the devastating effects of the pandemic.
Despite these obstacles, Versace has continued to maintain intrinsic value thanks to its brand awareness and its rich cultural heritage.
La real opportunity for Prada materialized last fall, when, on October 24, the federal court in New York blocked the operation that was supposed to bring Tapestry to merge with Capri Holdings. A decision that forced Capri to sell the Medusa label and the Jimmy Choo brand. Prada seized this opportunity, deciding to acquire Versace with the aim of relaunching the brand and exploiting the great growth potential that still resides within it.
The details of the operation
Prada's acquisition of Versace was structured as acash-free, debt-free operationa cash equivalent for an enterprise value of 1,25 billion euros. The final price, subject to Closing adjustments, will be defined taking into account various parameters, including Versace's net financial position at the time of the closing, expected for the second half of 2025, provided that they are necessary regulatory approvals completed.
In addition to the payment of the cash amount, the agreement provides that the overall value of the transaction also includes the tax loss benefit carryforward, a significant advantage for the Prada Group. Capri Holdings will also help cover certain acquisition-related expenses, making the deal even more financially advantageous.
To finance the operation, Prada has signed a €1,5 billion financing, divided into two tranches: a 1 billion euro term loan and a 0,5 billion euro bridge facility, supported by the banks Intesa Sanpaolo and Bnp Paribas. Despite the financing, the group maintains a solid net financial position, which at the end of 2024 was positive by 600 million euros.
The Versace brand: an icon to be relaunched
Versace, founded in 1978 by Gianni Versace, has always been one of the symbols of Italian luxury and creativity. Despite the difficulties of recent years, the maison continues to represent one of the most recognizable realities on the international scene, thanks to its distinctive aesthetic and its deep connection with the tradition of luxury. In recent years, the brand has failed to replicate the expected successes, with sales suffering, especially due to changes in consumer tastes and global economic uncertainty.
With the acquisition, Prada has theopportunity to give new life to Versace, keeping intact its creative DNA and cultural authenticity, but at the same time benefiting from the solid infrastructure and expertise that the group has developed over the years, especially in the accessories and footwear sectors, where Prada is known for its mastery.
Part of this vision is linked to the push by Lorenzo Bertelli, son of Miuccia Prada and Patrizio Bertelli, who is taking on an increasingly central role in the group's future strategy. Lorenzo, who deals with communications and sustainability, has pushed for a portfolio diversification, also targeting iconic brands such as Versace. Under his leadership, Prada has already demonstrated its ability to transform a brand, as in the case of MIU MIU, which in 2025 exceeded one billion in turnover.
With this acquisition, Versace finally changes its “soul”, returning under the control of an Italian owner. The maison is preparing to enter a new phase, also following the recent Donatella Versace's farewell to the brand's creative direction. Donatella who will continue to be present within the maison as Chief Brand Ambassador, helping to keep alive the link with the brand's historical heritage.
“We are delighted to welcome Versace into the Prada Group and to start a new chapter for a brand with which we share a constant commitment to creativity, product care and a strong cultural heritage. Our goal is to give continuity to the Versace legacy, celebrating and reinterpreting its bold and timeless aesthetics; we will offer a solid platform, strengthened over the years by continuous industrial and distribution investments" commented Patrizio Bertelli, President and Executive Director of the Prada Group.
“The acquisition of Versace represents a further step in the evolutionary path of our Group and adds a new, different and complementary dimension. We feel ready to open this new chapter. Versace has enormous potential. the the journey will be very long and will require patience and discipline in execution. Evolving a brand takes time and ongoing care. Despite the period of great uncertainty, we look to the future with confidence, projected towards a long-term strategic vision" he declared Andrea Guerra, CEO of the group.
