In a landmark deal reshaping the global luxury fashion landscape, Prada announces it will acquire iconic Italian fashion house Versace for $1.4 billion. The move marks one of the largest mergers in the industry in recent years and signals Prada’s bold ambition to expand its global reach and elevate its status as a powerhouse in high-end fashion.
The Milan-based Prada Group confirms the acquisition in a statement released this morning, describing Versace as a “highly recognizable and culturally influential” brand with “significant untapped growth potential.” The purchase is seen as a strategic move that aligns with Prada’s vision to diversify its brand portfolio and further penetrate the global luxury market, particularly in North America and Asia, where Versace maintains a strong presence.
Founded in 1978 by the late Gianni Versace, the fashion house became synonymous with opulence, bold patterns, and celebrity-driven campaigns. The designer’s tragic murder in 1997 by serial killer Andrew Cunanan stunned the world and marked a turning point for the company, which was then taken over by his sister Donatella Versace, who has remained the brand’s creative director since.
Versace has undergone several transformations over the past two decades and was acquired in 2018 by Capri Holdings, a conglomerate that also owns Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace expanded its retail footprint and digital operations, though industry analysts say it has struggled to capture the rapid growth seen by competitors such as Gucci and Louis Vuitton.
Now under Prada’s ownership, Versace is expected to benefit from Prada’s operational infrastructure, sustainability initiatives, and cutting-edge digital platforms. Donatella Versace is reportedly staying on as creative head and will work closely with Prada CEO Andrea Guerra to maintain Versace’s artistic direction while integrating into the broader Prada Group ecosystem.
Market analysts view the acquisition as a bold and potentially transformative move. With this purchase, Prada signals it is willing to compete directly with LVMH and Kering—the two dominant luxury conglomerates—by building a multibrand empire. Prada’s acquisition could also spark a new wave of consolidation across the luxury industry as brands respond to shifting consumer trends and growing competition in global markets.
The deal is expected to close later this year, pending regulatory approval. Early investor reactions appear optimistic, with Prada’s stock rising modestly in European trading. The announcement has also generated significant buzz within the fashion world, with many anticipating a new era for Versace—one that honors its heritage while preparing it for future innovation and global expansion.
Source Links:
https://www.reuters.com/business/retail-consumer/prada-acquires-versace-2025
https://www.bloomberg.com/news/articles/2025-04-10/prada-to-buy-versace-for-1-4-billion
https://www.nytimes.com/2025/04/10/style/prada-versace-deal
https://www.businessoffashion.com/news/luxury/prada-versace-merger
https://www.vogue.com/article/prada-acquires-versace
https://youtu.be/uIkWZlJ2rg0
