Prada Group has officially completed its acquisition of Versace from Capri Holdings, closing a deal valued at around $1.38 billion and bringing one of Italy’s most famous fashion houses under the Prada umbrella. First announced in April 2025 with an agreed enterprise value of €1.25 billion (about $1.375 billion), the transaction has now cleared all regulatory approvals and marks one of the biggest luxury consolidations of the decade.
What Prada bought and how the deal was structured
Under the terms of the agreement, Prada is acquiring 100% of Versace on a debt‑ and cash‑free basis, paying a consideration based on an enterprise value of €1.25 billion. The final price is subject to customary closing adjustments linked to Versace’s net working capital and net financial position. Capri, which bought Versace in 2018 at an enterprise value of about €1.83 billion, will use the proceeds to pay down debt and refocus on Michael Kors and Jimmy Choo.
Prada is funding the acquisition with €1.5 billion in new debt, split between a €1.0 billion term loan and a €0.5 billion bridge facility arranged with major banking partners. Even after the financing, the group says it will retain balance‑sheet flexibility thanks to its existing cash and undrawn credit lines.
Why Prada wanted Versace
In its announcement, Prada Group describes Versace as a “distinctive asset” with exceptional global brand awareness and “significant untapped growth potential,” particularly in categories like leather goods and accessories where recognition has historically outpaced sales. Chairman Patrizio Bertelli called the acquisition the start of “a new chapter” for both houses, emphasizing shared commitments to creativity, product excellence and Italian heritage.
Chief executive Andrea Guerra framed the deal as a long‑term, strategic move, saying Versace has “huge potential” but will require disciplined execution and patience to unlock its growth trajectory. With Versace, Prada now controls three globally recognized brands—Prada, Miu Miu and Versace—giving the group more weight against conglomerates like LVMH and Kering in an industry increasingly dominated by multi‑brand luxury groups.
What changes for Versace
Prada has said Versace will retain its creative identity and cultural authenticity while leveraging the group’s industrial platform, supply chain and retail execution. Reporting around the closing notes that Lorenzo Bertelli will become Versace’s executive chairman, guiding strategy after Donatella Versace stepped down as chief creative officer, while Prada has not signaled immediate executive upheaval.
Analysts expect Prada’s disciplined supply chain, vertical integration and proven ability to scale performance at Miu Miu to help Versace accelerate in handbags, shoes and accessories, and to bring more consistency to margins. The group is expected to outline a more detailed expansion plan over the next 12–18 months, including potential product‑line development and refreshed retail concepts across key markets.
What this means for Capri and the wider market
For Capri Holdings, the sale of Versace is part of a broader streamlining that allows it to strengthen its balance sheet and concentrate investment on Michael Kors and Jimmy Choo. Capri has said the transaction will significantly reduce leverage and increase financial flexibility for future growth and shareholder returns.
More broadly, the acquisition underscores how consolidation is reshaping luxury. After the collapse of Capri’s proposed merger with Tapestry on antitrust grounds, Prada seized the opening to secure Versace and bulk up its own portfolio. With this deal closed, the competitive map in European luxury shifts again, as Prada positions itself more clearly as a third force behind the largest global groups.
