Prada Group finalizes € 1.25 billion deal for Versace's acquisition
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Prada Group announced today, in a press release, that it has reached an agreement to acquire Versace from Capri Holdings for €1.25 billion. Capri Holdings, the U.S.-based multinational that bought the brand in 2018 for $2.1 billion, is expected to finalize the deal by the second half of 2025.
The decision to purchase Versace comes at a time when Prada Group feels the need to increase its competitiveness in the market, especially against French luxury giants LVMH and Kering. Patrizio Bertelli, Chairman and CEO of Prada Group, stated that the aim is to preserve the brand's heritage while focusing on the future of the house founded by Gianni Versace. For the fiscal year ending in March, Versace’s revenue dropped by 19% to $810 million, but Prada Group hopes to break even by March 2026.
The fashion industry has also been impacted by the current political and trade instability: following the recent global stock market crash — triggered by U.S. President Donald Trump’s announced global tariffs — Capri Holdings’ shares fell by 36% over the course of a week, only to partially recover after the announcement of a suspension of U.S. tariffs.
The decision to purchase Versace comes at a time when Prada Group feels the need to increase its competitiveness in the market, especially against French luxury giants LVMH and Kering. Patrizio Bertelli, Chairman and CEO of Prada Group, stated that the aim is to preserve the brand's heritage while focusing on the future of the house founded by Gianni Versace. For the fiscal year ending in March, Versace’s revenue dropped by 19% to $810 million, but Prada Group hopes to break even by March 2026.
The fashion industry has also been impacted by the current political and trade instability: following the recent global stock market crash — triggered by U.S. President Donald Trump’s announced global tariffs — Capri Holdings’ shares fell by 36% over the course of a week, only to partially recover after the announcement of a suspension of U.S. tariffs.