Prada Group Inches Closer to $1.6 Billion USD Deal for Versace

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On March 3rd, 2025: After carefully examining Donatella Versace’s Italian fashion brand for several weeks, Prada Group is moving closer to finalizing a purchase from its current owner, Capri Holdings Ltd. As per sources familiar with the situation, Prada has consented to a price of approximately €1.5 billion EUR ($1.6 billion USD). [Source: BoF]

After an initial thorough examination found no potential issues, conversations are moving forward to the next level, according to the outlet’s unnamed sources. It’s possible that Prada and Capri may finalize a deal by the end of this month, but it’s important to note that nothing has been officially confirmed yet. The timing and financial aspects could still be adjusted, and there’s a chance that negotiations might not succeed.

On February 19th, 2025, it has been reported that Prada Group is considering a takeover bid for the luxury brand Versace. According to unnamed sources talking to Business of Fashion, this move is being explored. The Italian site The Platform reports that Prada has entered into an exclusive agreement to conduct a thorough investigation (due diligence) regarding Versace. However, it’s important to note that there is no certainty that these internal discussions will lead to a formal offer being made.

From 2023 to 2024, Versace suffered a $7 million increase in losses, while Prada and Miu Miu saw significant sales growth, which is not common in the luxury market. If successful, this potential acquisition by Prada would mark a return of Versace under Italian ownership, as it would join the family-owned conglomerate.

On a Friday morning, the Italian newspaper Il Sole 24 Ore mentioned rumors about a possible takeover of Versace by Prada Group, according to market buzz in its latest report.

After a U.S. Federal court blocked the merger between Capri Holdings (owner of Versace) and Tapestry (operator of Coach and Kate Spade), Capri Holdings sought advice from Barclays on possible alternative strategies, as reported by Il Sole. It appears that Capri Holdings proposed a potential business transaction concerning the sale of their brand to Prada and its Citi associates.

Should the deal be successful, Versace would consider itself fortunate to become part of Prada’s esteemed label clan, which has remained robust even during the dip in luxury sales. Interestingly, when Gucci’s parent company Kering and LVMH (Louis Vuitton’s owner) showed signs of struggle in Q4 of 2024, Prada Group proudly announced a 18% increase in their 9-month net revenues compared to the previous year – a growth largely attributed to Miu Miu’s increasing popularity.

It’s not guaranteed that Prada’s approach will be effective against Versace. Despite their shared Italian heritage, these brands have distinct styles. Versace is known for its elaborate patterns and rich embellishments, while Prada is characterized by a minimalist design philosophy that has become popular in recent times.

As a devoted follower, I must admit that I’ve noticed Versace taking some significant hits in the broader decline of luxury brands. In the second fiscal quarter of 2025, Capri Holdings shared that Versace experienced a steep drop in revenue by 28.2%. It seems that the brand is finding it hard to connect with consumers as giants like Louis Vuitton and emerging forces such as Jacquemus are making waves and dominating the market.

Stay tuned to TopMob for updates on the potential sale of Versace and other fashion industry news.

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2025-03-03 22:26