Prada Acquires Versace for EUR1.25 Billion

The renowned Milanese fashion house, Prada, has announced its acquisition of Italian rival Versace for a total of EUR1.25 billion. This agreement, confirmed on Thursday, was reached with Capri Holdings, which owned the luxury brand.

The transaction involves a cash payment that reflects an enterprise value of EUR1.25 billion, subject to adjustments at the time of closing. Prada anticipates that the deal will be finalized in the latter half of 2025, pending the fulfillment of certain conditions, including the acquisition of necessary regulatory approvals.

To facilitate this acquisition, Prada has secured a long-term loan amounting to EUR1 billion. The company's CEO expressed a commitment to preserving Versace's legacy while celebrating and reinterpreting its bold and timeless aesthetic. Furthermore, Prada aims to provide Versace with a robust platform built on years of investment and established relationships within the industry.

Founded in 1978 by designer Gianni Versace, the brand has become synonymous with luxury fashion. Following Gianni's tragic assassination in 1997, his sister, Donatella Versace, took over the creative helm, although she stepped down from her role in March of this year. Currently, Versace operates 230 boutiques worldwide and has 638 licensed retail outlets, offering a diverse range of products that include women's, men's, and children's fashion, as well as shoes, handbags, and accessories. The brand also extends to eyewear, watches, and perfumes.