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In a landmark move that reshapes Italy’s luxury fashion landscape, Prada SpA has confirmed its acquisition of Versace for $1.38 billion (approximately €1.25 billion).
The all-cash deal marks the biggest acquisition in Prada’s 112-year history, returning the iconic Versace brand to Italian ownership and enhancing Prada’s ability to compete with luxury giants like LVMH and Kering SA.
Italian luxury brand Prada is nearing a deal to acquire Versace after securing a discount of over $200 million, influenced by the effects of U.S. President Donald Trump’s trade war.
Versace Joins Prada’s Portfolio with Full Ownership
As per the agreement, Prada will acquire 100% of Versace on a debt-free and cash-free basis. Versace, which was founded in 1978 in Milan, is globally recognized for its bold Italian luxury fashion. The acquisition gives Prada a strategically complementary brand that offers strong global brand awareness and significant growth potential.
Prada has assured that Versace will maintain its creative autonomy, brand identity, and cultural roots. It will also benefit from Prada Group’s robust infrastructure, including advanced retail operations, manufacturing capabilities, and operational support systems.
Patrizio Bertelli, Chairman and Executive Director of Prada Group, shared his enthusiasm, “We are thrilled to welcome Versace into the Prada family. Together, we aim to celebrate and evolve its iconic and fearless design philosophy while providing the support of our long-standing platforms and investments.”
Andrea Guerra, CEO of Prada Group, emphasized the strategic nature of the acquisition, “This deal adds a new and complementary dimension to our group. While the journey of brand evolution takes time and dedication, Versace’s untapped potential makes us optimistic about the future.”
Financing and Transaction Structure
The acquisition will be financed through €1.5 billion in new debt, consisting of a €1.0 billion term loan and a €0.5 billion bridge loan. Prada Group also maintains ample financial flexibility with strong cash reserves and undrawn credit lines.
The final price is subject to adjustments based on Net Working Capital and Financial Position, and Capri Holdings will cover certain transactional expenses.
Both Prada S.p.A. and Capri Holdings have approved the deal, which is expected to close in the second half of 2025, pending necessary regulatory approvals and closing conditions.
Citigroup Global Markets Europe AG and Goldman Sachs Bank Europe SE (Succursale Italia) are acting as financial advisors.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.
BNP Paribas and Intesa Sanpaolo are underwriting the financing of the transaction.
This acquisition solidifies Prada’s position as Italy’s top luxury fashion group, bringing Versace home while paving the way for new growth, innovation, and brand synergy. With strong leadership and a clear vision, Prada is set to shape the future of fashion in the global luxury arena.
