New Delhi: Italian powerhouse Prada announced on Thursday that it would acquire rival rival vsacs in the deal € 1.25 billion (more than Rs 12,000 crore) deal from the US-based Capri Holdings, which is ready to recreate the balance of power in high fashion.
The deal to close in the second half of 2025 creates an Italian luxury veteran with more than € 6 billion revenue – a bold challenge for French behemoths such as LVMH and KERing, amidst a global recession in luxury expenses.
“We are pleased to welcome Versus in the Prada Group,” said Prada’s Executive Director and Brand’s Long Helmasprason Patrijio Burteli. “We share a strong commitment to creativity, craftsmanship and heritage.”
A fire sale and a farewellThe acquisition comes at a discount. Capri Holdings, who acquired Versace for € 1.83 billion in 2018, had to accept a low proposal from Prada due to weak sales and trump-era tariffs that reduced the valuation.
Adding to the conspiracy, Donatela Versace – who captured the house after the tragic murder of his brother Jianni in 1997 – stepped as a constructive director on 1 April, paved the way for the deal. Donatela, now 69, will serve as the main brand ambassador of the label.
His replacement, Dario Vitley, is the force behind the rise of the younger brother -in -law of Prada, Miu Miyu – indicates a possible axis for Versace from Glitz to General Z.
The opposite world collidesThe merger brings two different worlds together: Versace’s Oppurate, Baroque Beauty and Cerebral Minorism of Prada. Prada insists that it will not erase the Versace’s DNA, but instead it will increase it with “industrial abilities and operating expertise”.
Nevertheless, analysts warns a delicate balance act.
“This is a risky step,” said Luka Solka, a luxury analyst of Bernstein. “Prada can be distracted by his main occupation, as with earlier acquisitions such as Jill Sander and Helmut Lang.”
Target for renaissanceIn FY 2025, Versace’s third quarter revenue fell by 15 percent to $ 193 million, which was far from Prada’s growing performance. Under the guidance of Creative Director Miucccia Prada and CEO Andrea Guerra, Prada made a net profit of 25 percent in the net profit in 2024, reaching € 839 million, rising to € 5.4 billion in revenue.
Gujara further accepted the work: “The journey will be long and will require disciplined execution. Versace has great ability – but it takes time to grow.”
Bend the tablesThe acquisition is more than a financial step – this is a statement of intentions. In recent years, the French Group has scored Italy’s most talented stars: Gucci, Fundi, Botga Veneta. With this deal, Prada flipped the script.
Design consultant Antonio Bondini Conty said, “Prada will be able to bring back the light in a brand that was dying and infecting it with new life.”
W.The heter strategy pays the payment to be seen. But in a world where fashion loves a comeback, Prada is betting on the next chapter of that Versace – wrapped in minimal luxury and turbocharged by millions accuracy – it can be the most bold yet.
