Thu Apr 10 21:59:17 UTC 2025: ## Prada Snaps Up Versace in $1.38 Billion Deal, Bolstering Italian Fashion Powerhouse

**Milan/New York –** In a major shakeup of the luxury fashion world, Prada announced Thursday its acquisition of Versace from Capri Holdings for $1.38 billion. The deal unites two iconic Italian fashion houses, creating a stronger Italian presence in a market dominated by French conglomerates like LVMH.

The acquisition marks a significant expansion for Prada, which has weathered recent economic slowdowns in the luxury sector. Versace, while possessing a strong brand identity known for its bold, baroque style, has reported losses in recent quarters. Prada executives emphasized the complementary nature of the two brands, stating that there is little overlap in customer base or creative direction. Lorenzo Bertelli, Prada’s marketing director, highlighted the lack of creative overlap, suggesting the merger will expand Prada’s customer reach.

The deal comes as Capri Holdings seeks to refocus its efforts on its core brands, particularly Michael Kors, following a period of underperformance. The sale price represents a discount compared to Capri’s 2018 purchase of Versace from the Versace family and Blackstone. Wall Street reacted negatively to the deal, with Capri’s stock dropping 9% on the news.

While the acquisition comes amidst global economic uncertainty and recent tariff concerns, Prada’s CEO Andrea Guerra described it as a long-term investment focused on revenue growth rather than cost-cutting measures. The deal also marks a significant strategic shift for Prada, its first major acquisition in decades following past acquisitions deemed “strategic mistakes.”

Donatella Versace, stepping down as chief creative officer, expressed her support for the new era at the brand, underscoring the family’s approval of the deal. Prada plans to finance the acquisition with €1.5 billion in new debt, with the deal expected to close in the second half of the year. The transaction signifies the growing influence of Lorenzo Bertelli within Prada, who is expected to assume the CEO role in the future.

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