Prada to buy rival Versace for $1.38 billion

The Prada Group planned to purchase the entirety of rival Italian luxury fashion house Versace for $1.38 billion, according to a Thursday statement. Capri Holdings, the luxury fashion group that owns Versace, expected the deal to close in the second half of 2025, according to a separate Thursday statement. The acquisition announcement came about a week after Donatella Versace formally stepped down as the brand’s chief creative officer.

Donatella’s brother, Gianni, founded the now internationally recognized fashion house in 1978. The brand is known for its bold and glamorous designs rooted in haute couture. Versace’s designs tend to contrast with Prada’s designs, which emphasize elegance through minimalism, though both houses are equally recognized for their quality and craftsmanship.

Will the merger change the Versace brand style? Prada insisted that Versace would retain its creative roots while benefiting from the strength of the Prada Group’s resources. Versace will continue celebrating its legacy by re-imagining its bold and timeless styles, Prada Executive Director Patrizio Bertelli said.Prada is ready to confidently start a new page in Versace’s history, he added.

Capri has worked for several years to re-position Versace for long-term growth, and Prada is the perfect company to guide Versace into its next era of success, said Capri Holdings CEO John Idol in the company’s release.

Dig deeper: Read Lynde Langdon’s 2018 report about Versace pulling inspiration from the Catholic Church.