Prada bags Versace in $1.38 billion deal, aims to outshine french fashion titans

NEW DELHI: Italian powerhouse Prada introduced Thursday it can purchase flamboyant rival Versace from US-based Capri Holdings in a €1.25 billion (over Rs 12,000 crore) deal, a transfer poised to reshape the steadiness of energy in excessive fashion.
The deal, set to shut in the second half of 2025, creates an Italian luxurious big with revenues exceeding €6 billion — a daring problem to French behemoths like LVMH and Kering, amid a world slowdown in luxurious spending.
“We are delighted to welcome Versace to the Prada Group,” mentioned Patrizio Bertelli, Prada’s govt director and long-time helmsperson of the model. “We share a strong commitment to creativity, craftsmanship, and heritage.”
A hearth sale and a farewellThe acquisition comes at a reduction. Capri Holdings, which acquired Versace for €1.83 billion in 2018, had to settle for a decreased supply from Prada due to weakened gross sales and Trump-era tariffs that dented valuations.
Adding to the intrigue, Donatella Versace — who took over the home after the tragic homicide of her brother Gianni in 1997 — stepped down as artistic director on April 1, paving the best way for the deal. Donatella, now 69, will function the label’s chief model ambassador.
Her alternative, Dario Vitale, is the power behind the rise of Prada’s edgy youthful sibling, Miu Miu — signaling a possible pivot for Versace from glitz to Gen Z.
Contrasting worlds collideThe merger brings collectively two distinct worlds: Versace’s opulent, baroque aesthetic and Prada’s cerebral minimalism. Prada insists it gained’t erase Versace’s DNA however will as a substitute improve it with “industrial capabilities and operational expertise.”
Yet analysts warn of a fragile balancing act.
“This is a risky move,” mentioned Luca Solca, luxurious analyst at Bernstein. “Prada may become distracted from its core business, as happened with earlier acquisitions like Jil Sander and Helmut Lang.”
Aiming for a renaissanceVersace’s third-quarter income in fiscal 2025 fell 15 % to $193 million, a far cry from Prada’s hovering efficiency. Under the steering of artistic director Miuccia Prada and CEO Andrea Guerra, Prada posted a 25 % bounce in internet revenue in 2024, reaching €839 million, with income climbing to €5.4 billion.
Guerra acknowledged the duty forward: “The journey will be long and will require disciplined execution. Versace has huge potential — but evolution takes time.”
Turning the tables on FranceThe acquisition is greater than a monetary transfer — it’s a press release of intent. In current years, French conglomerates have scooped up Italy’s brightest stars: Gucci, Fendi, Bottega Veneta. With this deal, Prada flips the script.
“Prada will be able to bring light back into a brand that was dying and infuse it with new life,” mentioned design advisor Antonio Bandini Conti.
Whether the technique pays off stays to be seen. But in a world the place fashion loves a comeback, Prada is betting that Versace’s subsequent chapter — wrapped in minimalist luxurious and turbocharged by Milanese precision — might be its boldest but.