Prada Acquires Versace from Capri Holdings in $1.375 Billion Deal

Prada Acquires Versace from Capri Holdings in $1.375 Billion Deal

Prada has officially agreed to acquire Versace from Capri Holdings (NYSE: CPRI) for $1.375 billion in cash, marking a major shakeup in the luxury fashion industry. The deal, long rumored but delayed due to recent market volatility triggered by President Donald Trump’s tariff policies, is expected to close in the second half of 2025.

Versace, the iconic Italian fashion house founded by Gianni Versace in 1978, will now join Prada's expanding portfolio, pending final regulatory approvals.

Capri, which also owns Michael Kors and Jimmy Choo, had seen its shares rise last week following a Bloomberg report that Prada was preparing to pay nearly €1.5 billion ($1.6 billion) for Versace. However, the deal's completion appeared uncertain until Thursday, when the Prada family gave its final approval, according to sources cited by The Wall Street Journal.

Despite the announcement, Capri shares fell nearly 11% to $14.65 in early Thursday trading. Just months ago, Capri shares had been trading above $40 before a federal judge blocked its $8.5 billion acquisition by Tapestry (NYSE: TPR), the parent company of Coach and Kate Spade.

This acquisition strengthens Prada’s position in the luxury fashion space while signaling a major shift in Capri’s strategic direction amid ongoing market pressures.