Prada moves closer to €1.5 billion deal to buy one of Italy’s best known fashion brands
Italian luxury group Prada is set to buy the iconic Versace name from US investor Capri Holdings in a deal reportedly worth nearly €1.5 billion.
Prada Group also owns brands such as Miu Miu, Car Shoe, the Luna Rossa fragrance brand and patisserie Marchesi 1824.
The deal would return the iconic Versace brand to Italian ownership and at the same time, the acquisition would significantly bolster Prada’s market position as it seeks to challenge the dominance of France’s LVMH, the powerhouse behind global luxury icons like Louis Vuitton, Moët & Chandon, and Hennessy.
According to Bloomberg, talks between the two companies are progressing after initial due diligence did not show any risks. The deal would unite two of Italy’s best known luxury fashion brands.
Founded by Mario Prada in 1913, Prada has kept the label in the family being creatively led by his granddaughter Miuccia Prada since 1978.
At Milan Fashion Week AW 25, Miuccia told reporters that the Versace deal was 'on everyone's table,' however, numerous fashion companies have shown interest in the Versace buyout.
In February, Reuters reported exclusively that the Italian luxury group was given first dibs ahead of other potential buyers after Capri Holdings put it up for sale. Capri was formally known as Michael Kors but was renamed after it took over Jimmy Choo in 2017 and then Versace in 2018.
According to Capri's long-term financial targets posted earlier this month, their business forecasts show that sales at Versace are expected to fall from €770 million to €760 million in the next financial year.
However, it also predicted that company sales would increase to €856 million by 2028.
One of Versace's previous deals was blocked by the US Federal Trade Commission in November 2024, stopping US conglomerate Tapestry taking over Capri for €8 billion.
Tapestry is the owner of Coach and Kate Spade, and just last month they sold the label Stuart Weitzman to Caleres for €78.5 million.
The US Federal Trade Commission believed that the merger would have 'eliminated competition and disadvantaged consumers by monopolising the affordable handbag market' as altogether they would have owned brands- Coach, Kate Spade, Stuart Weitzman, Michael Kors, Jimmy Choo, and Versace brands.
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