Prada shocks the fashion world: 1.25 billion euros for Versace!

Prada shocks the fashion world: 1.25 billion euros for Versace!

Today, April 10, 2025, Prada announced the purchase of the Italian fashion house Versace for 1.25 billion euros. This move comes as part of a 100 percent stake acquired from Capri Holdings. The deal, which has an enterprise value of 1.25 billion euros, could be subject to adjustments at closing. Completion of the purchase is expected in the second half of 2025, subject to approval from relevant authorities, such as vienna.at reported.

Prada has secured a long-term loan of 1 billion euros to finance the purchase. Patrizio Bertelli, CEO of Prada, stated the intention to continue Versace's legacy and celebrate and reinterpret its signature aesthetic. Versace itself was founded in 1978 by Gianni Versace and has since become a major player in the luxury segment. After Gianni Versace's murder in 1997, his sister Donatella took over the company's creative leadership, but stepped down in March 2025.

Challenges in the luxury segment

The purchase of Versace must also be seen in the context of the company's losses and global pressure in the luxury market. Loud The press The acquisition represents a continuation of Prada's expansion course while the luxury market is affected by a slowdown in demand. Interestingly, the contract price is lower than the approximately $2.15 billion that Capri Holdings paid for Versace in 2018.

Versace operates through 230 boutiques and 638 licensed shops worldwide and offers a wide range of women's, men's and children's fashion, shoes, bags, accessories, eyewear, watches and perfume. However, the macroeconomic challenges do not appear to be stopping the company from making strategic maneuvers such as the sale to Prada.

A look at the luxury market

Prada's acquisition of Versace comes at a time when the fashion and luxury sector remains attractive to investors despite geopolitical tensions and economic challenges, according to Deloitte analysis. The eighth edition of the Global Fashion & Luxury Private Equity and Investors Survey 2023 identified the narrowest segments in the industry of interest to investors, including cosmetics, apparel and watches.

A total of 292 M&A transactions were recorded in the sector worldwide in 2022, representing a slight increase compared to the previous year. While Europe saw the strongest growth in these transactions, market researchers show an interesting shift towards Asia and the Middle East, where greater growth is expected compared to Europe and the US.

Prada's acquisition of Versace could therefore be seen as a strategic move to gain a stronger foothold in a luxury segment dominated by French brands. Both companies face the challenge of maintaining their identity and market position in a constantly changing environment, while at the same time having to take into account the expectations of global customers.