Prada completes acquisition of Versace, stocks show modest market reaction

Italian luxury giant Prada has officially acquired Versace, expanding its portfolio and marking a major strategic move in the high-end fashion sector.

Italian luxury powerhouse Prada has finalized the acquisition of Versace from U.S.-based Capri Holdings for €1.3 billion ($1.5 billion), after earlier plans for Capri’s sale to Tapestry were halted due to antitrust concerns. The deal brings the iconic Versace brand, founded by Gianni Versace in 1978, under the Prada umbrella, joining its existing labels Prada and Miu Miu.

The move marks a significant strategic expansion for Prada, which had been pursuing Versace for several years. Lorenzo Bertelli, son of Prada owners Miuccia Prada and Patrizio Bertelli, will assume the role of executive chairman of Versace following integration. Donatella Versace, who stepped down as creative director earlier this year, noted the closing coincided with her late brother Gianni’s birthday.

Prada shares reacted moderately to the announcement, showing a slight decrease of 0.77% on the day, reflecting market caution. Capri Holdings, which sold Versace, is trading around $25.22 per share, close to its recent six-month high and representing a roughly 45% increase over the past half-year.