Prada Acquires Versace for $1.38 Billion

Prada has agreed to acquire Versace from Capri Holdings for approximately $1.38 billion, a move that unites two prominent Italian fashion houses. This acquisition is Prada's largest in its 112-year history and aims to expand its revenues and customer base by incorporating Versace's distinct style. The deal, which includes Versace's debt, represents a significant discount to the $2.15 billion Capri Holdings (then Capri Holdings) paid for Versace in 2018. Capri Holdings is divesting Versace to strengthen its balance sheet and focus on turning around its Capri Holdings brand and investing in Jimmy Chan. The transaction comes amidst global market volatility and fears of recession triggered by Donald Trump's new tariffs, which both Prada and Capri Holdings braved to finalize the deal. Donatella Versace, who stepped down as chief creative officer prior to the announcement, expressed support for the new partnership. The acquisition marks a strategic shift for Prada, moving away from past 'strategic mistakes' in dealmaking, and reflects the growing influence of Lorenzo Bertelli, son of leading shareholders Miuccia Prada and Patrizio Bertelli.