Prada takes over Versace in $1.37 billion deal, ends long-standing luxury rivalry

The Prada Group on Tuesday announced it has officially purchased luxury fashion house Versace in a blockbuster deal worth $1.37 billion. With this acquisition, Versace will now sit alongside Prada and Miu Miu–bringing some of Italy’s most powerful fashion labels under one parent group.

The deal ends Versace’s tenure under Capri Holdings, the US-based luxury group that steered the brand through the unpredictable post-pandemic period. Capri said the funds from the sale will be used to pay down most of its debt, helping the company strengthen its balance sheet and free up room for future investments.

Capri to double down on Michael Kors and Jimmy Choo

Capri Holdings CEO John D. Idol said the sale significantly reduces the company’s debt load and improves its leverage ratio. He added that the group will now focus its energy on growing its remaining brand–Michael Kors and Jimmy Choo and expects the business to stabilise this year and return to growth by fiscal 2027.

Versace’s struggles made it ripe for a takeover

Versace has been experiencing challenges during the past years, as the 2022 retail momentum slowdown affected its sales and performance in early 2025 was still inconsistent. Capri’s filings show the brand struggled to keep pace with expectations compared to the strong run it enjoyed before the pandemic.

Prada aims to reignite Versace’s momentum

By joining Prada’s global portfolio known for its boundary-pushing fashion, sharp tailoring and carefully controlled distribution, Versace is expected to enter a more stable phase. The acquisition is also set to reshape Milan’s luxury landscape by bringing two of Italy’s most iconic labels under the same group.

Industry observers say Prada could help streamline manufacturing, pricing and distribution across its brands, while giving Versace access to stronger capital, long-term planning and a clearer growth strategy.

The transaction is fully complete, with only routine post-deal processes left. Analysts believe Prada’s financial strength and brand-building experience could help usher Versace into a new chapter of global expansion, according to an IANS report.