Prada to potentially buy Versace from Capri Holdings in €1.5 billion deal

The deal would unite two Italian fashion giants and could potentially create an Italian counterpart to French luxury groups, reports say.

Mar 4, 2025 - 14:02

Prada to potentially buy Versace from Capri Holdings in €1.5 billion deal

**Prada’s interest in Versace reflects a strategic move to expand its brand portfolio and strengthen its position in the ultra-competitive luxury fashion market {Image: Shutterstock}**

Italian luxury fashion house Prada is reportedly nearing an agreement to acquire Versace from Capri Holdings for approximately €1.5 billion (US$1.6 billion).

As reported by multiple titles, including Financial Times, Reuters and The Guardian, the potential acquisition would unite the two Italian brands, positioning Prada to better compete with French luxury conglomerates such as LVMH and Kering.

According to Bloomberg, the deal could potentially conclude this month. However, the timing and valuation remain subject to change.

Capri Holdings, which also owns Michael Kors and Jimmy Choo, acquired Versace in 2018 for €1.8 billion, including debt. Since then, Versace has faced challenges, reporting a -15% decline in revenue in the final three months of 2024.

According to Reuters, analysts note that while Versace operates at a loss and requires restructuring, Prada possesses the expertise to address these challenges, particularly in manufacturing, marketing and retail.