Prada Set to Acquire Versace for €1.25 Billion

Prada SpA is on the verge of finalizing a deal to acquire iconic fashion house Versace from Capri Holdings Ltd. for approximately €1.25 billion ($1.4 billion), despite global market turbulence and tariff pressures, according to Bloomberg.

Sources familiar with the matter, who spoke on condition of anonymity due to the confidential nature of the discussions, indicate that Prada’s board is scheduled to meet Wednesday to give the final green light to the acquisition. The move marks a significant step toward restoring Versace to Italian ownership after several years under Capri Holdings’ control.

The transaction price represents a reduction from the nearly €1.5 billion figure originally discussed. According to Bloomberg, the discount reflects Versace’s ongoing turnaround requirements as well as the broader impact of tariffs that have weighed on international luxury goods.

Related: Prada in Talks to Acquire Versace in a Potential €1.5 Billion Deal

Negotiations between Prada and Capri Holdings have been underway for several months, with both sides ironing out final technical details ahead of the expected agreement later this week. As per Bloomberg’s reporting, the parties are still finalizing certain terms, but a consensus on the deal structure appears within reach.

Capri Holdings acquired Versace in 2018 for roughly €1.8 billion. A successful sale to Prada would not only mark a return to Italian stewardship for the famed brand but also strengthen Prada’s hand in an increasingly competitive luxury landscape, positioning it more aggressively against global giants like LVMH and Kering SA.

Source: Bloomberg