Prada Group Acquires Versace From US Group In $1.37 Billion Deal

MUMBAI -The Prada Group on December 2 announced that it has officially acquired luxury fashion label Versace in a deal worth $1.37 billion.

With this move, Versace will now operate under the same umbrella as Prada and Miu Miu, bringing together some of Italy’s most influential fashion brands.

The deal marks the end of Versace’s ownership under Capri Holdings, the US-based luxury group that had controlled the brand through the post-pandemic years.

Capri Holdings said the money received from the sale will be used to repay most of its debt, a step that will strengthen its financial position and improve its flexibility for future investments.

John D. Idol, Chairman and CEO of Capri Holdings, said the sale will help reduce the company’s debt burden and improve its leverage ratio. He added that Capri will now focus on growing its remaining brands — Michael Kors and Jimmy Choo — and expects the company to stabilize this year and return to growth by fiscal 2027.

Versace has faced challenges in recent years, with slower retail growth after 2022 and a mixed performance in early 2025.

With the acquisition, Versace will now join Prada’s global portfolio, which is known for its experimental fashion, strong tailoring and selective distribution.

Industry observers say the deal could help streamline manufacturing, distribution and pricing strategies across the brands. It may also help Versace revive its performance with better access to capital and stronger long-term planning under Prada’s management. (IANS)