After months of speculations, the rumors surrounding the merger of the top fashion brands in Italy were finally led to rest after the official confirmation. According to various sources, the deal was initially approved for 1.4 billion dollars however a discount was provided after Trump’s new trade policies. In 2018, Capri Holdings initially bought Versace for 2.8 billion dollars and in 2025, sold the brand for 1.25 billion dollars.
Prada Group officially announces to now own Versace
Prada chairman, Patrizio Bertelli showed his excitement at the new venture and revealed his plans for the latest fashion brand acquired. “We aim to continue Versace’s legacy by celebrating and re-interpreting its bold and timeless aesthetic,” said Bertelli.
The deal comes after years of struggle for Versace to keep the brand afloat. With the debt rapidly piling on and the battle to keep up with the demand, the decision to finally sell the company was difficultly made. The Capri shares were diluted down to 24% in the past year. Seeing its past struggles, Bertelli stated that the Prada Group could give Versace a “strong platform” to be back in the race to compete with the top fashion brands.
CEO of Prada, Andrea Guerra showed her faith in the decision reiterating Bertelli’s plan. She showed her support saying, “Versace has huge potential.” Guerra further talked about the sacrifices needed to be made to achieve their goals. She said, “The journey will be long and will require disciplined execution and patience.”
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Donatella praises the new owners
Donatella Versace has held the position of CEO of the fashion brand for 28 years. She took on the role after her brother, the founder of the brand, was murdered. The family sold the brand 7 years ago to Capri. Speaking about the new ownership, she expressed her pleasure at the brand being in the hands of people committed to growing it immensely.
Expressing her admiration for the Prada family, she stated, “I am honored to have the brand in the hands of such a trusted Italian family business.” Donatella further extended her support and offered her expertise if she could be helpful in any way.
Discount offered
After all discussions, the Prada family is paying 1.25 billion dollars for Versace. This is a drastic difference from the amount that the Capri family paid for the same brand in 2018. The Versace family sold their brand for around 2 billion dollars to Capri Holdings then.
The huge difference is a result of the market disruption. This comes after Trump introduced new tariff laws immediately after coming into power. This triggered a market turmoil spreading fears of recession and prompting the Capri family to take the drastic step.
The Capri CEO explained his decision to sell the fashion brand by saying that they aim to “increase shareholder value” and to strengthen their finances. They are also looking to focus on growing other brands that the company owns including Micheal Kors and Jimmy Choo.
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Obstacles in the deal
Tapestry and Capri Holdings made the decision to end their merger agreement, originally priced at more than 8 billion dollars. This decision was taken after the Federal Trade Commission court initially halted the finalization of the deal pointing out an unfair advantage to Tapestry. The court claimed that if successful, the merger would result in an unfair advantage after all the top fashion brands were under the ownership of one owner. This included Coach, Jimmy Choo, Micheal Kors, Kate Spade, and Versace.
After Prada entered the conversation, it was then able to form its own mega group allowing massive room for them to grow.
The Capri CEO, John Idol expressed his contentment at handing over Versace to capable new owners. “We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success,” said Idol.
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