Prada buys Versace for $1.38bn, expanding luxury fashion empire

Published: 03 December 2025. The English Chronicle Desk. The English Chronicle Online

Italian luxury fashion house Prada has officially acquired Versace in a $1.38bn (£1.04bn) deal, bringing two of Italy’s most iconic designer brands together. The purchase price is notably below the roughly $2bn Capri Holdings paid for Versace in 2018, marking a substantial discount. The acquisition expands Prada’s portfolio, which already includes Miu Miu, as the company aims to strengthen its competitive position against major rivals like French conglomerate LVMH, owner of Louis Vuitton, Dior, and Fendi.

Versace’s storied creative director Donatella Versace stepped down in March after 27 years at the brand, taking over in 1997 following the tragic murder of her brother, Gianni Versace. She has been succeeded by Dario Vitale, formerly design director at Miu Miu, Prada’s youth-focused label. Under Capri Holdings, Versace faced declining sales and a shift from its signature ornate styles toward minimalist designs, coupled with increased prices, contributing to the brand being sold at a roughly $700m loss.

Prada confirmed the completion of the acquisition in a brief statement, noting that all regulatory approvals had been secured. Capri Holdings stated that proceeds from the sale would be used to reduce debt, strengthening its balance sheet. Capri CEO John D. Idol emphasized that the company plans to use the funds primarily for debt repayment, enhancing financial stability. Meanwhile, Prada CEO Andrea Guerra highlighted Versace’s “huge potential,” acknowledging that growth would require careful execution and long-term commitment.

This acquisition signals a significant consolidation within the luxury fashion sector, as Prada looks to diversify its offerings and expand its influence in the global market. Analysts note that the combination of Prada’s established global presence and Versace’s high-fashion legacy could create a powerhouse capable of competing more effectively with major international rivals. With this deal, Prada is positioning itself for long-term growth while breathing new life into Versace’s brand identity.