Prada acquired Versace with a deal worth 1.25 billion euros.
Capri Holding was struggling to position Versace, a favorite of Italian fashion known for its sexy silhouettes and eye-catching patterns, within the recent "quiet luxury" trend.
Prada Group announced on Thursday that it has acquired Versace from the American luxury group Capri Holding for a deal valued at 1.25 billion euros (52.8 billion TL). Versace had been owned by Capri Holding, a multinational fashion group founded in 1981 by American designer Michael Kors, since 2018. At that time, Capri had paid 2 billion dollars (1.84 billion euros) for Versace. However, with the recent trend of "quiet luxury," it was struggling to maintain its position as a loyal part of Italian fashion with its sexy silhouettes and loud patterns. In a press release on the company's website, it was stated, "The transaction is expected to be completed in the second half of the 2025 calendar, subject to customary closing conditions, including regulatory approvals." John D. Idol, the company's Chairman and CEO, commented on the deal in a press release, saying, "Versace is an iconic Italian luxury fashion house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace." He added, "In the last six years, we have made tremendous progress in repositioning the brand to emphasize its luxury heritage and exceptional craftsmanship. Thanks to improved products, 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 take Versace into its next phase of growth and success." Idol also expressed that this transaction reflects the group's commitment to enhancing shareholder value and strengthening its balance sheet while empowering the growth of Michael Kors and Jimmy Choo. "We will continue to implement the strategic initiatives we shared at our last Investor Day and maintain our confidence in the long-term growth potential of Michael Kors and Jimmy Choo," he stated.