Photo: Reuters
The Italian fashion house Prada has announced the acquisition of the legendary Versace brand from the American group Capri Holdings for EUR 1.375 billion. The deal, which will be one of the most high-profile in the fashion industry in recent years, is expected to close in the second half of 2025. The merger of the two Italian style flagships marks an attempt to regain leadership in the global luxury market, which has been dominated by French players such as LVMH and Kering in recent years. Reuters reports.
Founded in 1978 by designer Gianni Versace, Versace has become an icon of Italian glamour and bold style. Prada CEO Patrizio Bertelli said that the merger of the two fashion houses “opens a new chapter where Italy’s creativity, craft and cultural heritage will become the basis of a global force”.
This deal bucks the trend of recent years, when Italian brands such as Gucci, Fendi or Bottega Veneta have been taken over by French conglomerates. For comparison, Prada is now valued at €14 billion, while LVMH, the owner of Louis Vuitton, is worth many times more. The deal was also a blow to Capri Holdings, which paid more than $2.1 billion for Versace in 2018, including debt.
Italy, which produces almost half of the world’s luxury goods, finally has a chance to create its own global player. After the merger of Prada and Versace, the new giant’s combined revenues will exceed €6 billion, a serious challenge to the hegemony of LVMH and Kering.
