Prada bags Versace in $1.38 billion deal, aims to outshine french fashion titans – Times of India

NEW DELHI: Italian powerhouse Prada introduced Thursday it is going to purchase flamboyant rival Versace from US-based mostly Capri Holdings in a €1.25 billion (over Rs 12,000 crore) deal, a transfer poised to reshape the stability of energy in excessive fashion.
The deal, set to shut in the second half of 2025, creates an Italian luxurious big with revenues exceeding €6 billion — a daring problem to French behemoths like LVMH and Kering, amid a world slowdown in luxurious spending.
“We’re delighted to welcome Versace to the Prada Group,” stated Patrizio Bertelli, Prada’s govt director and lengthy-time helmsperson of the model. “We share a powerful dedication to creativity, craftsmanship, and heritage.”
A hearth sale and a farewellThe acquisition comes at a reduction. Capri Holdings, which acquired Versace for €1.83 billion in 2018, had to settle for a lowered provide from Prada due to weakened gross sales and Trump-period tariffs that dented valuations.
Including to the intrigue, Donatella Versace — who took over the home after the tragic homicide of her brother Gianni in 1997 — stepped down as artistic director on April 1, paving the way in which for the deal. Donatella, now 69, will function the label’s chief model ambassador.
Her substitute, Dario Vitale, is the drive behind the rise of Prada’s edgy youthful sibling, Miu Miu — signaling a possible pivot for Versace from glitz to Gen Z.
Contrasting worlds collideThe merger brings collectively two distinct worlds: Versace’s opulent, baroque aesthetic and Prada’s cerebral minimalism. Prada insists it received’t erase Versace’s DNA however will as a substitute improve it with “industrial capabilities and operational experience.”
But analysts warn of a fragile balancing act.
“This can be a dangerous transfer,” stated Luca Solca, luxurious analyst at Bernstein. “Prada could develop into distracted from its core enterprise, as occurred with earlier acquisitions like Jil Sander and Helmut Lang.”
Aiming for a renaissanceVersace’s third-quarter income in fiscal 2025 fell 15 p.c to $193 million, a far cry from Prada’s hovering efficiency. Below the steering of artistic director Miuccia Prada and CEO Andrea Guerra, Prada posted a 25 p.c soar in internet revenue in 2024, reaching €839 million, with income climbing to €5.4 billion.
Guerra acknowledged the duty forward: “The journey might be lengthy and would require disciplined execution. Versace has large potential — however evolution takes time.”
Turning the tables on FranceThe acquisition is greater than a monetary transfer — it’s an announcement of intent. Lately, French conglomerates have scooped up Italy’s brightest stars: Gucci, Fendi, Bottega Veneta. With this deal, Prada flips the script.
“Prada might be in a position to deliver gentle again right into a model that was dying and infuse it with new life,” stated design marketing consultant Antonio Bandini Conti.
Whether the technique pays off stays to be seen. However in a world the place fashion loves a comeback, Prada is betting that Versace’s subsequent chapter — wrapped in minimalist luxurious and turbocharged by Milanese precision — may very well be its boldest but.