Luxury fashion could be on the brink of another major shake-up. Prada is moving closer to acquiring Versace from Capri Holdings in a deal worth nearly €1.5 billion ($1.6 billion- Rs 14,000 crores approx.), according to Bloomberg News. If finalised, this would mark one of the biggest moves in the high-end fashion industry, bringing together two iconic Italian brands under the Prada umbrella.
The discussions between Prada and Capri Holdings have gained momentum after initial due diligence did not reveal any significant risks. Sources suggest that the deal could be finalised as early as March, though details such as timing and valuation remain subject to change. While Prada has not commented on the matter, Capri Holdings has yet to respond to media inquiries.
Versace, known for its bold designs and Medusa logo, has been owned by Capri Holdings since 2018, when it was acquired for €1.83 billion, including debt. The move was part of Capri’s broader strategy to build a luxury fashion empire, which also includes Jimmy Choo and Michael Kors. However, with changing market dynamics and increasing competition from European luxury powerhouses like LVMH and Kering, Capri appears to be reassessing its portfolio.
Prada, a family-controlled business led by Miuccia Prada and Patrizio Bertelli, has been eyeing expansion opportunities. The company was given preferential access to Versace’s financial data in February, putting it ahead of other potential suitors. Miuccia Prada recently confirmed that several companies were interested in acquiring Versace, signaling strong demand for the brand despite challenges in the luxury retail market.
If the deal goes through, it would unite two of Italy’s most recognisable fashion names, each with distinct styles and global appeal. Prada is known for its understated elegance, innovation, and craftsmanship, while Versace has built its reputation on bold, flamboyant, and extravagant designs. The potential acquisition raises questions about how Prada would integrate Versace into its existing business and whether the brand’s creative identity would remain intact.
The luxury fashion industry has been undergoing significant consolidation, with major players looking to strengthen their positions through strategic acquisitions. LVMH’s purchase of Tiffany & Co. in 2021 and Kering’s acquisition of high-end brands like Creed and Valentino in recent years highlight the ongoing battle for dominance in the market. Prada’s interest in Versace aligns with this trend, potentially giving it a stronger foothold in the luxury segment.
Despite the progress in negotiations, sources caution that the deal is not yet finalised and could still fall apart. The valuation, final terms, and regulatory approvals will play a crucial role in determining whether the acquisition moves forward. If successful, the deal would mark a new chapter for both Prada and Versace, reshaping the landscape of Italian luxury fashion.