Prada acquires Versace for €1.25 billion in major luxury fashion shakeup

Italian fashion house Prada announced Thursday that it has reached a ‘definitive’ deal with the US-based Capri Holdings Group to acquire another fashion giant Versace for €1.25 billion (~₹12,000 crore). 

Prada is looking to expand amid a global slowdown in luxury demand, while Versace has been operating at a loss in recent years. 

The acquisition will create a luxury powerhouse with annual revenues exceeding €6 billion, positioning the new group to compete with industry giants such as LVMH, Gucci, and other French conglomerates. This strategic move comes as the luxury sector faces global headwinds and softening demand, as per reports.

“Within the Prada Group, Versace will maintain its creative DNA and cultural authenticity, while benefitting from the full strength of the Group’s consolidated platform, including industrial capabilities, retail execution and operational expertise,” said Prada in a statement.

The deal follows the March 13 announcement that Donatella Versace is stepping down as the Chief Creative Officer of the iconic brand, founded by her late brother Gianni Versace.