(Prada at the Versace Autumn/Winter 2025 show in Milan)
Recently, Reuters reported that Prada has finalized a deal to acquire Versace from Capri Holdings, the owner of Michael Kors and Jimmy Choo. The transaction valued at over $1.3 billion.
Reuters further states that the initial price was set at $1.6 billion. However, Prada CEO Andrea Guerra successfully negotiated a lower price.
Mr. Guerra stated that this is a long-term project, primarily aimed at increasing revenue rather than cost savings.
(Patrizio and Miuccia Prada, key figures in the Prada family)
Prada is seeking expansion, despite a decline in luxury demand. Meanwhile, Versace has suffered losses in recent quarters. This acquisition strengthens Italy’s position in the luxury market, a sector currently dominated by French conglomerates, most notably LVMH, the owner of Louis Vuitton.
Prada Chairman Patrizio Bertelli commented, “We intend to carry on Versace’s legacy by honoring and re-imagining the brand’s bold and timeless aesthetic.”
“Simultaneously, we will provide the company with a solid foundation, reinforced by years of consistent investment and rooted in long-lasting relationships,” he added.
Patrizio Bertelli is the husband of designer Miuccia Prada. Together, they are key shareholders of the company.
Versace, known for its bold baroque-style prints, is expected to attract new customers to Prada, which is renowned for its minimalist style.
(Donatella Versace commenting on the acquisition)
Despite this, Lorenzo Bertelli, the marketing director and son of Miuccia and Patrizio Prada, stated that there will be no creative or customer overlap.
Since acquiring Helmut Lang and Jil Sander in the late 1990s (acquisitions which Chairman Bertelli considers “strategic mistakes”), Prada has largely avoided major acquisitions.
The price Prada agreed to pay represents a substantial discount from an estimated $2.15 billion, including the debt Capri took on in 2018 to acquire the brand from the Versace family and Blackstone.
Previously, the valuation was reported at approximately €1.5 billion. However, this figure was prior to recent market fluctuations.
This Versace acquisition marks a significant shift in the group’s strategy, occurring two years after appointing Guerra as CEO. Previously, Patrizio Bertelli and Miuccia Prada held this role. The move also reflects the increasing influence of Lorenzo Bertelli, who is expected to become future CEO.
Furthermore, the deal reignites hopes for the “Made in Italy” luxury brand, following the acquisition of many other family-founded brands by French, Swiss, or American companies.
Capri Holdings CEO John Idol stated that the transaction reflects their commitment to increasing shareholder value, strengthening their balance sheet, and driving future growth for Michael Kors and Jimmy Choo.
The deal closed following a March 13th announcement that Donatella Versace resigned as creative director of the brand founded by her late brother, Gianni Versace, in 1978.
Donatella Versace also praised the new partnership, expressing pride in the brand’s future under a trustworthy Italian family-run business. Despite her departure from the creative director position, she remains ready to support the brand’s new era in any way possible.
During this time, the brand also terminated its contract with ambassador Kim Soo Hyun amid allegations of inappropriate relations with actress Kim Sae Ron, when she was underage.
In December 2024, Prada selected Kim Soo Hyun as a brand ambassador after he gained global acclaim for the film Queen of Tears. This Korean actor drew international media attention in the January of this year at the Autumn-Winter 2025 men’s fashion show in Milan, Italy.
Prada originated from a leather goods shop founded in Milan in 1913 by the grandfather of designer Miuccia Prada. Listed in Hong Kong, the brand rapidly expanded under Miuccia and Bertelli’s leadership.
Separately, Versace is famous for its Medusa logo, established in Milan by Gianni Versace. Following her brother’s assassination in Miami, Florida in 1997, Donatella became the brand’s key creative figure.
