Prada Acquires Versace for $1.4 Billion Despite Tariff Turmoil

In a bold move signaling a major shift in strategy, Prada has sealed a $1.38 billion deal to acquire fellow Italian fashion icon Versace from Capri Holdings, even as global markets reel from U.S. tariff shocks. The acquisition, which includes debt, unites two of Italy’s most recognizable fashion houses and is aimed at boosting Prada’s long-term revenue rather than immediate cost-cutting.

Despite market volatility and political uncertainty, Prada pushed forward with the purchase, betting on Versace’s bold, baroque aesthetic to complement its minimalist luxury lineup. The acquisition comes at a discount compared to the $2.15 billion price tag Versace fetched in 2018 and follows Donatella Versace’s announcement that she will step down as creative director. She has pledged support for the brand's new chapter under Prada’s leadership.

Prada says the move marks a new era for the group, which has largely avoided major acquisitions since the 1990s. The deal—backed by €1.5 billion in new debt—is expected to close in the second half of 2025. With this strategic play, Prada positions itself to challenge French luxury giants while reinforcing Italy’s stake in the global fashion power game.