Prada acquires Versace for 1.25 billion euros: a new fashion giant is emerging!

Prada acquires Versace for 1.25 billion euros: a new fashion giant is emerging!

Prada has announced that it will acquire Italian fashion house Versace for 1.25 billion euros. This deal, expected to close in the second half of 2025, represents a significant step in Prada's expansion strategy. The acquisition is subject to various conditions, including the approval of all necessary regulatory approvals. To finance the purchase, Prada took out a long-term loan worth one billion euros. This shows how determined the company is to strengthen and expand its position in the luxury segment while many other brands are struggling with a decline in demand. crown reports that Prada boss Patrizio Bertelli emphasizes that they want to continue Versace's legacy and celebrate its signature aesthetic.

Versace, which was founded in 1978 by designer Gianni Versace, has struggled with financial difficulties in recent years and has even made losses. This came at a time when Prada, unlike many competing brands, continues to perform strongly in the luxury segment. Loud The press The price for Versace was lower than the approximately $2.15 billion that Capri Holdings paid for the fashion house in 2018. Capri took over the company from the founding family and the financial investor Blackstone.

New leadership at Versace

A notable change in Versace's leadership recently took place: Donatella Versace, who had been the house's creative director since 1997, has ceased to be creative director since March. Her successor, Dario Vitale, was previously head of design at Miu Miu. These changes come at a time when Versace has 230 boutiques and 638 licensed stores worldwide, offering a wide range of products including women's, men's and children's fashion, shoes, bags and accessories, as well as eyewear, watches and perfume. crown highlights that given its recent difficulties, Versace now needs Prada's support to get back on track.

The Versace acquisition also comes in a challenging environment for the fashion industry, according to a study by McKinsey slow economic growth and uncertainties are weighing on the outlook. Industry growth is estimated at 3.5 to 4.5 percent, with the luxury market showing overall positive prospects with growth of between 4.5 and 5.5 percent. However, the uncertain economic situation and urgent developments such as Brexit contribute to volatility.

The Versace acquisition could be a strategic move to strengthen Prada's position in the luxury market dominated by French corporations. At a time when fashion companies have to overcome creative but also economic challenges, the focus on strong brands like Versace could be crucial to remain successful in global competition.