Prada Group Inches Closer to $1.6 Billion USD Deal for Versace
The Milan-based company has agreed to a price, and future discussions could result in a deal by the end of this month.
Update (3/3/2025): After spending several weeks evaluating Donatella Versace’s Italian fashion house, Prada Group is inching toward closing a deal to buy Versace from its current owner, Capri Holdings Ltd. According to “people close to the matter” via BoF, Prada has agreed to a price of almost €1.5 billion EUR ($1.6 billion USD).
Conversations are now entering the next phase after initial due diligence did not identify any risks, per the outlet’s anonymous sources. Prada and Capri could reach a deal by the end of this month, though nothing is confirmed just yet. “The timing and valuation could change, and discussions could still fall apart,” the sources said.
Update (2/19/2025): Prada Group has initiated a full review of Versace to weigh the possibility of a bid for the brand, as per a statement made by anonymous employees to Business of Fashion. According to the Italian website The Platform, Prada has signed an exclusive agreement to carry out the due diligence report, though there is currently no guarantee that private deliberations will yield a formal offer. Between 2023 and 2024, Versace saw a $7 million increase in losses, while Prada and Miu Miu saw sales soar, an increasing rarity in the luxury sector. Prada’s potential bid would also be the first step in bringing Versace back under domestic Italian ownership into the fold of the family-owned conglomerate.
Original Story (1/10/2025): On Friday morning, the Italian newspaper Il Sole 24 Ore cited market speculation in a report detailing a potential acquisition of Versace by Prada Group.
Following the blocked merger of Versace-owner Capri Holdings and Tapestry (owner of Coach and Kate Spade) by a US Federal court, Capri Holdings enlisted Barclays to explore alternative options, according to Il Sole. It was reported that Capri Holdings pitched a potential deal to Prada and its Citi partners regarding the sale of the brand.
If the deal were to go through, Versace would be lucky to join Prada’s brand family, which has weathered strongly throughout the slowdown in luxury sales. When Gucci-owner Kering and Louis Vuitton-owner LVMH reported poor performance in the final quarters of 2024, Prada Group triumphantly reported 9-month net revenues up 18% year-over-year–boosted by Miu Miu‘s surging popularity.
However, it’s not certain that Prada’s magic will work on Versace. Though the two labels share an Italian provenance, the brands’ aesthetics sit on opposite ends of the spectrum. While Versace made a name for itself with busy patterns and opulent details, Prada has maintained a design ethos of restraint, which has resonated strongly in recent years.
On the other hand, Versace has suffered big blows in the general decline of luxury performance. In November, Capri Holdings reported that Versace’s revenue dropped by 28.2% in the second fiscal quarter of 2025. The brand seems to have struggled to resonate with consumers as outsized competition from luxury titans like Louis Vuitton and newcomers like Jacquemus dominates the market.
Stay tuned to Hypebeast for updates on the potential sale of Versace and other fashion industry news.
