Prada Acquires Versace for $1.4B, Reviving Italian Control

Prada has acquired Versace from Capri Holdings for approximately 1.375 billion euros ($1.4 billion), marking a significant shift in the luxury fashion landscape as Versace returns to Italian ownership after being under U.S. control since 2018. The acquisition aims to revitalize Versace's brand potential while complementing Prada's existing portfolio, which includes labels like Miu Miu. Prada's Chairman Patrizio Bertelli highlighted the strategic importance of this deal in strengthening Italy's position in a market dominated by French luxury conglomerates. Despite Versace's recent financial struggles, Prada sees value in its recognizable aesthetic and growth opportunities. The deal is expected to close in the second half of 2025 and will be funded by new debt, reflecting Prada's confidence in the luxury sector's recovery. Overall, this move is viewed as a hopeful revival for Italian luxury brands amid a challenging market environment.