Prada Buys Versace in €1.25 Billion Deal

Italy has always been known for its fashion. The country produces almost half of the world’s luxury personal goods.

But for years, many of its top brands have ended up in foreign hands. Now, that trend is seeing a turn.

Two of Italy’s most famous names are coming together under one roof.

Prada has announced that it will buy Versace in a deal worth 1.25 billion euros, according to Hotnews. It’s an all-cash deal.

Versace was previously owned by the US group Capri Holdings, which also owns brands like Michael Kors and Jimmy Choo.

The move brings Versace back into Italian control. Prada CEO Patrizio Bertelli said the company is excited to welcome Versace into the group.

He called it a chance to build a new chapter for a brand that shares Prada’s values of creativity, quality, and heritage.

The boards of both Prada and Capri Holdings have approved the agreement.

If all goes to plan, the deal will be completed in the second half of the year.

With this move, Italy is forming a new luxury powerhouse. Prada and Versace together are expected to have yearly revenues of over six billion euros.

That puts them in a stronger position to compete with global giants like France’s LVMH and Kering.

This deal is especially interesting because, in recent years, French companies have been buying up major Italian brands.

For example, Gucci, Fendi, and Bottega Veneta are now part of French-owned groups.

Prada is currently the biggest Italian fashion company, with a market value of around 14 billion euros.

That’s still far below LVMH, the French group behind Louis Vuitton. Even if you add up the revenues of Italy’s five top fashion names, it still doesn’t match the earnings of Kering alone.

When Capri bought Versace in 2018, it paid over two billion dollars, including debt. Now Prada is paying less.

But the symbolic value is high. This deal is not just about business. It’s about bringing Versace back home.