The shocking merger
According to Reuters , on April 10, Prada reached an agreement worth approximately $1.38 billion to acquire Versace from Capri Holdings. This is a merger of two of the biggest names in the Italian fashion industry.
The deal comes after Donatella Versace stepped down as creative director of the Versace brand in March.
The merger not only affirms the sustainable value of Italian fashion in the context of volatile financial markets, but also shows Prada’s ambition to build its own Italian fashion empire, an empire that is strong enough to compete with giants such as LVMH or Kering of France.
Models wearing Versace at Milan Fashion Week 2025.
Prada President Patrizio Bertelli looks forward to continuing Versace’s legacy of celebrating and reinterpreting bold, timeless aesthetics.
Prada has been in talks for months to buy the fashion house founded by Gianni Versace in the 1970s. According to the Financial Times, Prada was close to completing the deal on April 9 after receiving a discount of more than $200 million due to the impact of the trade war.
Prada is a rising star in the luxury sector amid a global downturn. Sales at the fashion house surged in the third quarter of 2024. Meanwhile, Versace has been hit hard by the economic downturn in China. The brand needs to reboot and refresh its image.
Versace was founded by designer Gianni Versace in Milan (Italy) in 1978. Gianni’s designs were influenced by pop artist Andy Warhol, ancient Roman and Greek art.
Gianni Versace and his sister.
In 1994, Versace gained global fame when actress Elizabeth Hurley wore the brand’s black dress with a gold ribbon pin to the premiere of Four Weddings and a Funeral.
After Gianni Versace was murdered, his sister Donatella took the brand to new heights, building relationships with many stars such as Taylor Swift, Anne Hathaway, Rihanna, Lady Gaga, Jennifer Lopez… Since 2018, Versace’s revenue has plummeted.
