One of the fashion world’s most exciting deals is taking shape with the latest acquisition of the Versace house, which could signal the cult Italian brand’s “homecoming.” Today, the largest Italian brands, such as Gucci or Valentino, belong to overseas conglomerates. Prada is now striving to secure an even larger share of the global luxury market, reportedly knocking on Donatella Versace’s door with a $1.6 billion offer.
Prada SpA is said to be in the final stages of acquiring the iconic Italian fashion house from Capri Holdings Ltd., with insiders suggesting that the deal could be finalized as early as April. However, as with any business deal, there remains a chance that negotiations could collapse. Capri purchased Gianni Versace’s fashion house in 2018 for €1.8 billion and has been exploring various options for the brand as part of its broader strategy. Over the past year, however, Versace has suffered a 15% drop in revenue and operated at a $21 million loss, making an agreement with Prada a significant lifeline for the brand.
This acquisition would provide Prada with a stronger foundation to compete with dominant luxury giants LVMH and Kering, which currently control a vast array of prestigious fashion labels. The deal would also mark a significant shift, as Versace could finally return to Italian ownership—unlike Gucci and Valentino, which have been absorbed by foreign groups. Notably, Prada remains 80% owned by its central figure, Miuccia Prada (who also serves as the brand’s lead designer), and her husband, Patrizio Bertelli—a rarity among luxury fashion houses.
“Prada would be in a prime position to capitalize on Versace’s brand potential in the long term, paving the way for an Italian response to French luxury conglomerates.”
Prada has experienced significant growth in the past year, thanks in large part to the phenomenal success of its subsidiary brand, Miu Miu, which has pushed Prada’s market capitalization to approximately $22.5 billion. Yet, even these impressive numbers are dwarfed by their French competitors—LVMH, the owner of Louis Vuitton, Christian Dior, and many other luxury labels, currently boasts a market valuation of around $362 billion.
The numbers are huge, but a Versace acquisition could strengthen Prada’s standing in the luxury sector, bringing the iconic brand back under Italian control.