In a landmark move within the fashion industry, the Prada Group has confirmed its intent to acquire Versace, finalizing a cash deal valued at $1.375 billion. This acquisition marks a significant step for Prada, continuing its expansion in the luxury market while promising to uphold Versace’s unique brand identity and heritage.
As Prada Group embarks on this $1.375 billion acquisition, it has solidified an all-cash agreement to purchase 100 percent of Versace from Capri Holdings, putting the Enterprise Value at approximately €1.25 billion. The deal had faced delays stemming from fluctuating stock market conditions, as reported by The Wall Street Journal.
The transaction is projected to conclude in the latter half of 2025, setting the stage for significant changes and developments within both brands.
Versace, established in Milan in 1978, stands out as a leading name in international fashion, renowned for its luxurious designs and strong brand presence in the upscale market.
Prada’s Commitment to Versace
In a statement released Thursday, Prada Group emphasized its intention to preserve Versace’s creative vision and cultural authenticity. The acquisition will allow Versace to utilize the full capabilities of Prada’s consolidated platform, enhancing its industrial capabilities, retail execution, and overall operational expertise.
Patrizio Bertelli, Chairman and Executive Director of Prada Group, expressed his enthusiasm, stating: “We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship and heritage. We aim to continue Versace’s legacy by celebrating and re-interpreting its bold and timeless aesthetic.”
He further noted that Versace would benefit from a robust platform that has been nurtured by years of investments and established relationships, positioning the brand for a promising future while maintaining its unique identity.
The announcement has positively influenced the market, with Capri Holdings seeing a remarkable rise of 31.09 percent, closing at US$16.36 on the New York Stock Exchange, while Prada’s stock increased by 4.93 percent, reaching HK$47.85 on the Hong Kong Stock Exchange.
A New Era for Versace
John D. Idol, Capri Holdings’ Chairman and CEO, commented on the impact of this sale, highlighting Versace’s evolution over the past six years. “Versace is an iconic fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace,” he noted. “We have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship.”
The deal is anticipated to bolster Capri Holdings’ financial standing, decrease debt, and facilitate strategic investments in other prestigious brands like Michael Kors and Jimmy Choo.