Prada Group is close to successful acquisition of Versace, with transaction amounts of up to €1.5 billion

UPDATE（2025/Mar/4）：After weeks of evaluation, Prada Group is gradually advancing its plans to acquire Versace and entering in-depth negotiations with its current parent company Capri Holdings Ltd. according to BoF The latest report pointed out that “people in the matter” revealed that Prada has roughly agreed to acquire the Italian fashion brand for nearly €1.5 billion (about $1.6 billion).

The news pointed out that no major risks were found in the preliminary due diligence, and the negotiations have entered a new stage. If progress goes well, the two sides may reach a deal as early as the end of this month. However, the source also stressed: “The time and valuation of the transaction may still change, and there is still a possibility of a breakdown in the negotiations.”

At present, neither Prada nor Capri has made an official response to the matter.

UPDATE（2025/Feb/9）：According to BOF, Prada Group has officially launched a comprehensive review of Versace to assess the possibility of acquiring the brand. Italian media The Platform further revealed that Prada has signed an exclusive agreement to start due diligence, but there is currently no definite guarantee that it will formally submit an acquisition offer.

Versace has performed unstable in recent years, with losses increasing by $7 million between 2023 and 2024, while sales of Prada and Miu Miu have increased significantly, especially in the current slowdown in the luxury market. If Prada finally proposes an acquisition plan, it will be a key step for Versace to return to the Italian local company, bringing the historic brand back to the family-run luxury group.

Currently, Prada and Versace parent company Capri Holdings have not made an official response to the matter.

Original text (2025/Jan/10):According to the Italian media “Il Sole 24 Ore”, it is reported that the Prada Group intends to acquire Versace, which has attracted high attention from the fashion industry.

According to reports, after the merger plan between Capri Holdings and Tapestry (Coach, Kate Spade parent company) was blocked by the US federal court, Capri Holdings immediately commissioned Barclays to reevaluate the strategic options and proposed a potential transaction plan to Prada and its partner Citi, considering selling Versace.

If the transaction is successful, Versace will join the Prada Group as part of the company's branded enterprise. Prada still showed strong resilience amid the slowdown in the luxury market. When Gucci parent Kering and Louis Vuitton parent LVMH performed poorly in the last quarter of 2024, the Prada Group grew against the trend. The report showed that net revenue in 9 months increased by 18% year-on-year, with the Miu Miu craze becoming the main driver.

However, it remains to be seen whether Prada's success model will work for Versace. Although both are Italian brands, the styles are obvious. Prada is known for its minimalist and restrained design aesthetics, while Versace establishes brand identity with complex patterns and luxurious details, both of which are representative at both ends of the fashion spectrum.

On the other hand, Versace has faced market challenges in recent years. Affected by the slowdown in luxury demand, Capri Holdings announced that Versace's revenue fell 28.2% year-on-year in the second quarter of fiscal year 2025, indicating that brand competitiveness has been strongly squeezed by luxury giants such as Louis Vuitton and new brands such as Jacquemus.

Currently, neither Prada nor Capri Holdings have made an official response to the rumors. Please keep an eye on Gdqun for more latest news on Versace's potential sales and fashion industry trends.