Prada is now the proud owner of the luxury fashion brand Versace. Versace was acquired from Capri Holdings for roughly $1.5 billion, making this the biggest takeover in Prada’s 112-year history.
The deal was announced in April 2025, following a move that had been long speculated but was finally sealed after obtaining regulatory approvals and completing due diligence. Prada’s leadership says the acquisition is “a highly strategic opportunity” to add to their product line. Under Capri Holdings, Versace reportedly had struggled in recent years and faced declining sales. With Prada’s acquisition, Versace gains access to Prada’s Italian manufacturing infrastructure, supply-chain expertise, and investment resources. The goal is to revive the Versace brand while preserving its signature style.
On the creative side, the transition coincides with a leadership shake-up. Donatella Versace stepped down as creative director earlier in 2025 after nearly three decades, and Dario Vitale (formerly at Prada’s sister brand Miu Miu) now heads Versace’s creative direction.
The purchase strengthens the position of Italian brands in the global luxury industry — a space long dominated by French conglomerates. Bringing two major names under one Italian roof could increase the competitiveness of luxury brands globally.
While the acquisition offers opportunity for Prada, it doesn’t come without risk. Versace struggled under Capri Holdings due to declining sales. Prada’s leadership has acknowledged a turnaround in product sells won’t happen overnight, but will require a long journey of disciplined execution.