In a landmark move for the fashion world, Italian luxury powerhouse Prada has announced it will acquire Versace from Capri Holdings for $1.375 billion. This deal marks a major shift in the luxury fashion landscape and brings Versace back under Italian ownership after years under the American-based Capri Holdings, which had originally bought the brand in 2018 for $2.15 billion.

The acquisition is expected to close in the second half of 2025, pending regulatory approvals. As part of the agreement, Prada will maintain Versace’s unique creative identity while integrating the brand into its own expansive infrastructure. Patrizio Bertelli, Chairman of Prada, emphasized that Versace’s bold aesthetic will remain untouched, but will now benefit from Prada’s global reach and operational support.

Strategically, this deal strengthens Italy’s position in the luxury fashion sector, which has long been dominated by French groups like LVMH and Kering. By acquiring Versace, Prada is aiming to create a strong Italian fashion group capable of competing on the global stage. The move also reflects a broader industry trend of consolidation as fashion brands look for ways to grow in a challenging economic environment.

Capri Holdings’ decision to sell Versace comes as part of a shift in focus. The company now plans to prioritize and reinvest in Michael Kors, its flagship brand, which generates the majority of its revenue. The sale of Versace is expected to free up capital and allow Capri to pursue new strategic directions.

This acquisition signals a bold future for both Prada and Versace. It not only expands Prada’s brand portfolio but also reinforces Italy’s cultural and business influence in luxury fashion. The industry will be watching closely to see how Prada manages the integration and how the iconic Versace brand evolves under its new ownership.