Prada nears $1.5 billion deal to buy Versace
Prada moves closer to $1.6 billion Versace acquisition
Prada SpA is nearing a deal to acquire Versace from Capri Holdings Ltd. for nearly €1.5 billion ($1.6 billion), according to sources familiar with the discussions.
The Milan-based luxury house could finalize the agreement later this month after due diligence found no significant risks, though the timing and terms remain subject to change, reports Bloomberg.
Capri, which purchased Versace in 2018 for about €1.8 billion, has yet to comment on the matter, and Prada declined to respond to inquiries. Prada’s shares rose as much as 3.9% in Hong Kong on Monday following news of the potential acquisition.
This deal would signal a rare consolidation in Italian luxury fashion, reversing a long-standing trend of domestic brands being acquired by international conglomerates like LVMH and Kering SA. With Versace under its umbrella, Prada would strengthen its position against these global players, creating a more formidable Italian competitor.
Market Position and Financial Performance
Prada has emerged as one of the luxury sector’s strongest performers amid a global slowdown in high-end fashion sales, driven largely by the success of its Miu Miu brand. The company has a market capitalization of about HK$169.4 billion ($21.8 billion), following a 10% share price increase since the start of 2025.
Even with this acquisition, however, Prada would remain far smaller than its biggest rivals. French giant LVMH, owner of Louis Vuitton and Christian Dior, boasts a market value of €347.5 billion and has been expanding its portfolio of Italian brands.
Versace, founded in 1978 by the late Gianni Versace, has struggled with declining revenues and mounting losses. The brand reported third-quarter revenue of $193 million, a 15% drop from the previous year, and an operating loss of $21 million.
Capri’s Strategic Challenges
Capri Holdings, which also owns Michael Kors, has faced increasing financial pressure following the collapse of its $8.5 billion merger with Tapestry Inc. The company’s debt was downgraded to below investment grade by S&P Global Ratings in February, and it hired Barclays Plc to explore options for its portfolio brands.
A deal with Prada would provide much-needed liquidity for Capri while reshaping the landscape of Italian luxury fashion. If finalized, it could mark a turning point for Versace under new ownership, potentially revitalizing the brand’s global presence and profitability.
Earlier, Italian luxury fashion house Prada is reportedly considering purchasing Versace from U.S.-based Capri Holdings.
