Prada Completes Versace Acquisition in $1.4 Billion Deal

The Prada Group completed its acquisition of Versace on December 2, 2025, in a deal valued at 1.25 billion euros, or approximately $1.4 billion. According to NBC News, the Milan-based luxury group received all required regulatory clearances to finalize the purchase from Capri Holdings. The transaction brings together two distinct Italian fashion houses: Versace, known for its sensual silhouettes, and Prada's intellectual aesthetic alongside Miu Miu's youth-driven designs.

Prada heir Lorenzo Bertelli will lead Versace as executive chairman while maintaining his roles as group marketing director and sustainability chief. CNN reports that the deal became possible after Capri Holdings' planned sale to rival Tapestry was blocked by antitrust regulators. Capri Holdings, which also owns Michael Kors and Jimmy Choo, purchased Versace for $2 billion in 2018 but struggled to position the brand during the recent "quiet luxury" trend. The sale proceeds will help reduce Capri's debt load.

Post-Pandemic Recovery Strategy

This acquisition aims to revive Versace's financial performance after years of middling results under Capri Holdings ownership. Versace represented 20 percent of Capri's 5.2 billion euro revenue in 2024. The Prada Group projects Versace will account for 13 percent of its combined revenues, with Miu Miu at 22 percent and Prada at 64 percent. The Prada Group reported a 17 percent revenue increase to 5.4 billion euros in 2024.

The brand is undergoing creative renewal under designer Dario Vitale, who previewed his debut collection at Milan Fashion Week in September 2025. Vitale previously served as head of design at Miu Miu. His appointment occurred before the acquisition announcement and was unrelated to the Prada deal, according to company executives. Donatella Versace, who led the brand as creative chief for nearly three decades, stepped down in March 2025.

Competition Among Luxury Conglomerates

The Prada-Versace merger reflects broader consolidation in the luxury sector as mid-sized brands struggle to compete independently. McKinsey reports that 46 percent of industry executives expect conditions to worsen in 2026, with tariffs cited as the primary challenge. The secondhand fashion market is forecast to grow two to three times faster than the firsthand market through 2027.

According to IMD, the top five luxury companies dominate 80 percent of industry sales. LVMH leads with a portfolio of over 75 brands, followed by Richemont and Kering. The Prada Group's acquisition positions it to compete more effectively with these French-dominated conglomerates. LVMH completed 140 deals since 2000, including the $15.8 billion Tiffany acquisition in 2021.

Industry observers note that Versace and Prada serve different customer segments, reducing cannibalization risk. Analyst Luca Solca of Bernstein Group described the pairing as "minimalist Prada with maximalist Versace." However, he cautioned that Versace is "long past its heyday" and requires creative reinvention to regain market relevance. The challenge lies in making the 47-year-old brand attractive to contemporary luxury consumers while maintaining its heritage.

Further Reading

For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. This resource provides comprehensive analysis of how economic systems are evolving worldwide.