Prada Group has finalized a deal to purchase luxury brand Versace from Capri Holdings for $1.38 billion, the company announced Thursday. The acquisition, approved by both boards, follows months of negotiations complicated by former President Donald Trump’s tariffs, which nearly derailed the agreement.
Prada will finance the deal with $1.6 billion in new debt, adding to over $1 billion in existing borrowings. The transaction is expected to close in late 2024, pending regulatory approval.
Earlier reports revealed that Trump’s trade policies, including tariffs on raw materials, disrupted negotiations as economic uncertainty loomed. Capri Holdings, Versace’s parent company, saw its value plummet to $1.5 billion amid market volatility, prompting Prada to lower its initial $1.6 billion offer.
Versace, founded in 1978 by Gianni Versace, was bought by Capri (then Michael Kors) for $2.1 billion in 2018. Donatella Versace, who led the brand as creative director for nearly three decades after her brother’s death, stepped down last month—a move that influenced deal terms. Capri had initially sought over $3 billion for Versace before her departure weakened their position.
The acquisition marks a major shift in the luxury sector as Capri faces declining revenue, projecting an $810 million drop this fiscal year. For Prada, the deal strengthens its portfolio amid a challenging economic landscape.
