Prada acquires Versace for €1.25 billion and asserts dominance in the European luxury market

In one of the most significant business moves in fashion history, the Prada group confirmed the purchase of Versace for a total value of €1,25 billion (pending regulatory approval and expected to be completed by the end of 2025). The transaction returns the iconic Italian fashion house, which has been controlled by the American conglomerate Capri Holdings Limited since 2018, to European hands.

Now, the Milanese brand founded in 1913 by Mario Prada will seek to reposition itself in the global luxury landscape, competing with giants like LVMH or Kering.

Impact on the European luxury sector

This merger has the potential to transform the Prada group into the third-largest European conglomerate in the sector after LVMH and Kering. Additionally, it is interpreted as a strategic response to the growing concentration of the luxury market under large French conglomerates.

The acquisition of Versace allows Prada to strengthen its portfolio with a globally recognized brand that has a strong presence in the United States and Asia and has a high potential for expansion in the segments of women’s fashion, footwear, accessories, and lifestyle.

According to the official statement from Prada Group, the objective of the purchase is to enhance the creative and commercial complementarity of both houses. Versace will maintain its creative independence and its current artistic direction. Moreover, it will be integrated into the operational ecosystem of the group, benefiting from its technological platform, its global distribution network, and its vertically integrated production capabilities.

As Patrizio Bertelli, Chairman and CEO of the Prada Group, explained, “Our goal is to continue the legacy of Versace, celebrating and reinterpreting its bold and timeless aesthetic; at the same time, we will provide it with a solid platform, reinforced by years of continuous investment and rooted in long-lasting relationships. Our organization is prepared and well-positioned to write a new chapter in Versace’s history.”

Two identities with common values

Versace is a brand with a rich history and a very distinct identity. Founded in Milan, it is distinguished by the opulence of its designs, the baroque prints, the use of gold, and the iconic Medusa logo. It has dressed celebrities like Elton John, Madonna, and Lady Gaga, and is considered one of the houses that best embodies the DNA of Italian glamour.

Moreover, both brands headline many covers of the most significant publications in the international fashion world, like Vogue, Elle, Harper’s Bazaar, Vanity Fair, etc.

In recent years, the company has strengthened its digital presence and its commitment to sustainability. Its corporate profile highlights a commitment to inclusion, diversity, and innovation (at least from a discourse perspective), values that align with the transformation strategy of the Prada group.

Prada, for its part, represents a vision of luxury deeply rooted in intellectual sophistication and aesthetic innovation. Also born in Milan, the firm was founded in 1913 and has built its legacy on a refined, experimental, and conceptually provocative elegance. Under the creative direction of Miuccia Prada, the brand has redefined contemporary fashion’s codes with a unique mix of minimalism, functionality, and social critique, with a progressive trend (always within the parameters of luxury, of course).

Iconic campaigns

Both Prada and Versace have effectively channeled their productions through marketing. Visual appeal in the luxury fashion market is paramount, and the promotional push is critical as well. In this sense, both brands serve as examples to follow. In addition to the perfection of their photographic and audiovisual productions, both brands have invested large amounts of money in seeking high-profile brand ambassadors.

As mentioned earlier, Versace has dressed figures like Elton John, Madonna, and Lady Gaga, and has worked with legendary supermodels such as Naomi Campbell, Cindy Crawford, and Claudia Schiffer, as well as contemporary stars like Gigi Hadid, Dua Lipa, and Zendaya.

Prada, on its part, has developed campaigns that will be engraved in fashion history, characterized by a cinematic and avant-garde aesthetic. In fact, it has collaborated with directors such as Wes Anderson and Ridley Scott, and among its ambassadors are Scarlett Johansson, Ezra Miller, Hunter Schafer, and more recently Letitia Wright and Jake Gyllenhaal. These collaborations have allowed the house to connect with new generations and consolidate its positioning as a culturally relevant and forward-thinking brand.

Prada had previously attempted to purchase Versace in 2018

In 2018, when Versace was put up for sale, Prada was already among the possible buyers interested in adding a brand with significant symbolic and international weight to its portfolio. However, at that time, it was the American group Capri Holdings -owner of Michael Kors- that advanced in the negotiations and closed the acquisition for nearly $2.310 billion USD (approximately 1.800 billion euros according to the exchange rate of that year).

The transaction surprised many in the industry, especially in Italy, where it was perceived as a loss of a national luxury icon. Despite not having completed the purchase at that time, Prada maintained its long-term interest, which materialized finally in 2025.

During the years that Versace was part of Capri Holdings, the brand managed to expand in the United States and Asia. However, the company did not achieve the expected profitability nor was it able to adapt the Italian idiosyncrasy of Prada into the new markets, leading it to initiate a divestment strategy. The sale to Prada responds to the objective of focusing on its main brands and improving its financial health.

Photo: Prada and Versace