Prada Completes Versace Buy for About £1.04 Billion
Prada completes the Versace acquisition for about £1.04 billion ($1.38 billion), a price far below the 2018 sale and a strategic expansion of Prada's luxury portfolio.
Prada has acquired Versace, uniting two iconic Italian luxury houses under one umbrella. The purchase values Versace at about £1.04 billion (roughly $1.38 billion) and comes after all regulatory checks were cleared.
The deal is notably cheaper than Versace’s price in 2018, when Capri Holdings bought the brand for about £1.5 billion ($2 billion).
What this means for Prada
The acquisition broadens Prada’s lineup beyond its own label and Miu Miu, helping the company compete with major luxury groups such as LVMH, which owns Dior, Fendi, and Louis Vuitton.
Brand leadership and strategy
Donatella Versace stepped down as creative director in March after 27 years, and the role has been filled by Dario Vitale, who previously led design at Miu Miu. Capri Holdings, Versace’s former parent, has faced slower sales across its brands, including Michael Kors and Jimmy Choo.
The financial angle
Capri Holdings says the sale proceeds will reduce debt and strengthen its balance sheet. Chief executive John Idol noted the plan to use the funds to repay the majority of debt, while Prada’s Andrea Guerra highlighted Versace’s significant growth potential.
What comes next
Industry observers expect the combined group to push product development and pricing strategies while expanding its geographic reach. The deal marks a major shift in the luxury fashion landscape as Italian brands consolidate their positions on the global stage.
Expert comment: The merger broadens Prada’s brand portfolio and strengthens its standing against the world’s leading luxury groups. The integration will unfold over several years, requiring careful planning and steady execution.
Short summary
Prada completed the purchase of Versace for about £1.04 billion, expanding its luxury brand lineup. The price is notably lower than Versace’s 2018 sale price, amid Capri Holdings’ efforts to reduce debt. Donatella Versace has stepped down as creative director, with Dario Vitale taking over design leadership. Capri Holdings will use the proceeds to strengthen its finances.
Key insight: Prada’s takeover of Versace signals a strategic shift in Italian luxury fashion, broadening brand reach and reshaping competition in the sector. Source: BBC News