A major luxury deal: Prada buys Versace for €1.25 billion.

BarcelonaItalian fashion house Prada announced this Thursday the acquisition of 100% of Versace for €1.25 billion. The purchase of the brand founded by Italian designer Gianni Versace, which was previously owned by the Capri Holdings group, was closed for that amount. "We are pleased to welcome Versace to the Prada group and open a new chapter for a brand with which we share an unwavering commitment to creativity, product care, and a strong cultural heritage," said Prada Chairman and CEO Patrizio Bertelli. The company's co-founder, along with his wife, Miuccia Prada, emphasized that the brand "is ready and well positioned to write a new page in Versace's history, build on the group's values, and continue with confidence and rigorous determination."

"Within the Prada group, Versace will maintain its creative DNA and cultural authenticity, while benefiting from the strength of the group's platform, including industrial know-how and expertise developed in retail and operational processes," the brand said in a statement. Prada had already shown interest for months. to buy Versace and last February commissioned an assessment of its accounts to decide whether the transaction made financial sense.

Regarding the purchase agreement, Prada has specified that the €1.25 billion acquisition is planned "on a cash and debt-free basis." Furthermore, "the final cash consideration will be determined at closing, taking into account adjustments based on working capital and net financial position." Furthermore, "the indicated value includes a significant amount of tax losses that can be carried forward," and "Capri Holdings will fund certain transaction-related costs." Capri, which also owns other luxury brands such as Jimmy Choo and Michael Kors, bought Versace in 2018 for approximately €1.8 billion.

Financial difficulties

Amid the crisis affecting the luxury fashion sector, Versace was also experiencing a difficult financial period, which Prada is managing to weather for the time being. In the first nine months of the year, Versace posted revenue of $613 million, a drop of almost 20% year-over-year. Furthermore, its operating loss was $41 million, compared to a profit of $24 million in the previous year. The transaction is expected to close by the second half of 2025.