Prada Acquires Versace: A Bold Move in Luxury Fashion

Two iconic Italian fashion brands, Prada and Versace, are joining forces in a blockbuster deal that’s shaking up the luxury world. Let’s break down the accurate details of this purchase, why it happened, how much it cost, and what’s next.

Why the Purchase?

Prada, a powerhouse known for its sleek, minimalist style, saw a chance to grow by purchasing Versace, who is famous for its bold, flashy designs. Versace has been struggling with losses lately, while Prada’s been thriving despite a slowdown in luxury demand. By bringing Versace into the fold, Prada aims to attract new customers who love Versace’s loud, glamorous vibe—think Medusa logos and vibrant prints. The move also strengthens Italy’s position against giant French fashion groups like Louis Vuitton’s parent company, LVMH. Prada’s leaders believe Versace’s unique style complements their brand without overlapping, creating a stronger, more diverse portfolio.

How Much Was the Deal?

The deal, finalized on April 10, 2025, saw Prada pay $1.38 billion in cash to buy Versace from its U.S. owner, Capri Holdings (which also owns Michael Kors and Jimmy Choo). This price includes Versace’s debt and is a discount compared to the $2.15 billion Capri paid for Versace in 2018. Talks started at a higher $1.5 billion, but market chaos from new U.S. tariffs lowered the final price. Prada’s funding the purchase with $1.5 billion in new loans, showing confidence in the long-term payoff.

What’s the Plan?

Prada’s not planning to overhaul Versace but to evolve it carefully. They’ll keep Versace’s bold identity while using Prada’s expertise in manufacturing and retail to boost sales. Versace’s new creative director, Dario Vitale, who came from Prada’s Miu Miu, is already in place to refresh the brand. Prada’s CEO, Andrea Guerra, says it’s a long-term project focused on growth, not quick fixes. Expect Versace to stay true to its roots but shine brighter with Prada’s backing. This deal marks a new chapter for both brands, uniting Italian creativity to compete globally.