While reports had been swirling around, it has been announced by Capri Holdings Limited and Prada S.p.A, that Versace will be acquired by the latter for €1.25 billion (approximately $1.38 billion).
Capri Holdings, which holds Michael Kors and Jimmy Choo too in its stable, will receive $1.375 billion in cash subject to certain adjustments. The transaction is expected to close in the second half of calendar 2025, subject to customary closing conditions including regulatory approvals.
John D. Idol, Capri Holding’s Chairman and CEO, said, “Over the last six years, we have made tremendous progress in repositioning the brand [Versace] to place greater emphasis on its luxury heritage and exceptional craftsmanship. Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”
As consistent with the recent downturn of luxury industry, Versace also saw a 15% decrease in revenue of $193 million, compared to prior year, in the third quarter of 2025. Revenue in the Americas declined 21%, while revenue in EMEA decreased 13% and revenue in Asia declined 11%. Having said that, Versace’s global database increased by 1.1 million new consumers, representing 15% growth over the last year, as per the financial statement by Capri Holdings.
Capri Holdings had a setback when the US’s Federal Trade Commission blocked its acquisition by Tapestry, Inc., in November 2024. The Versace-Prada deal will help Capri Holdings regain a better financial footing. Mr. Idol said, “This transaction reflects our commitment to increase shareholder value, strengthen our balance sheet and power the future growth of Michael Kors and Jimmy Choo.”
Even though Capri Holdings has taken a loss on the sale of Versace (the company had originally paid more than $2 billion for Versace in 2018), this acquisition is expected to deliver a number of benefits for Capri Holdings, helping them to make accelerated strategic investments in Michael Kors. These transaction proceeds will be used to support Capri Holdings’ capital allocation priorities, including debt reduction and future share repurchases.
“Versace has huge potential. The journey will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus.”
Even before that deal had been closed, Prada had started to ascertain its role in the future of Versace. Last month, Donatella Versace stepped down as the Creative Director of her namesake brand, to give the seat to Dario Vitale, an ex-Miu Miu (also owned by Prada Group).
Patrizio Bertelli, Prada Group Chairman and Executive Director, commented, “We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftmanship and heritage. We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”
Prada is borrowing an additional €250 million to invest in relaunching Versace. According to their investor presentation, the Group expects to wait for 24-48 months to see positive results.
Andrea Guerra, Prada Group CEO, said, “The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary. The Group’s infrastructure is strong, we have verticalised our brands’ organisations and reinforced our routines and processes. We feel ready to open this new chapter. Versace has huge potential. The journey will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus.”
Versace has come home in a way, as it returns to Italy with the Prada Group. We are excited to see the evolution of Versace.
