Italian luxury fashion house Prada has agreed to acquire its rival Versace from Capri Holdings in a deal valued at $1.375 billion, including debt. This strategic move is aimed at strengthening Italy’s position in the global luxury fashion industry, which has long been dominated by French conglomerates like LVMH and Kering.

Key details:

• The deal comes as Prada is performing strongly, while Versace has struggled financially.
• The acquisition price is significantly lower than the $2.15 billion Capri paid for Versace in 2018.
• The transaction follows Donatella Versace’s recent decision to step down as Chief Creative Officer.
• Prada plans to retain Versace’s distinctive aesthetic while leveraging its operational strengths to revitalize the brand.
• This marks Prada’s most significant acquisition move since the late 1990s.
• The merger is also notable against a backdrop of broader market uncertainty and stalled global M&A activity due to geopolitical and economic tensions.

Prada leadership expressed confidence in the long-term value of Versace and sees the move as a way to attract a broader customer base while preserving the heritage of both brands.