In a landmark move that rekindles hope for a unified Italian luxury powerhouse, Prada has struck a $1.375 billion deal to acquire iconic fashion house Versace—bringing one of Italy’s most celebrated brands back under national control. The deal, which transfers ownership from U.S.-listed Capri Holdings (formerly Michael Kors), marks a strategic play to reclaim Italian influence in the global luxury landscape, long dominated by French, Swiss, and American conglomerates.
Versace, acquired by Capri in 2018 for $2.15 billion including debt, now returns to Italian hands at a time when many domestic fashion groups are outperforming the broader luxury market. Despite Italy accounting for more than half of the world’s production of personal luxury goods, the country has yet to develop a luxury conglomerate that rivals French giants like LVMH and Kering.
Milan-based Prada, valued at approximately €14 billion ($15 billion), is Italy’s largest luxury fashion company by revenue. Yet on the global stage, it has remained a modest player in terms of market capitalization. The acquisition of Versace represents a bold pivot for Prada, signaling a newfound ambition to grow through consolidation—a strategy it had previously avoided after deeming earlier acquisitions of Helmut Lang and Jil Sander as “strategic mistakes.”
“This acquisition represents Prada’s serious attempt to build a group— and a much more ambitious one compared to their past ventures,” said Achim Berg, a fashion and luxury adviser. “It’s exactly what many Italians have been hoping for.”
Versace and Prada share Milanese roots and sit just four kilometers apart. Their alignment could herald the rise of a new era in Italian fashion—one driven by homegrown collaboration and generational succession. Prada’s recent leadership transition also plays a key role: with Andrea Guerra stepping in as CEO in 2023 to guide the company through a generational shift, all eyes are on Lorenzo Bertelli, the son of co-owners Miuccia Prada and Patrizio Bertelli, who is widely seen as the heir apparent.
The move comes amid increased consolidation across the sector. French rivals continue to expand their Italian footprints, with Kering acquiring a 30% stake in Valentino and LVMH taking Tod’s private while snapping up a 10% stake in Moncler’s top shareholder. Meanwhile, Italian firms such as Moncler, Ermenegildo Zegna, Brunello Cucinelli, and Ferragamo, though growing, still fall short in scale.
Company founder Brunello Cucinelli offered a vivid contrast in cultural approaches during the Milano Fashion Global Summit: “Our esteemed French counterparts are great financiers. But we Italians regard our ‘tiny big’ companies as if they were our little children, so we want to look after them and hand them down to a next generation.”
This sentiment underscores the emotional and cultural underpinnings of Italy’s fashion heritage—elements Prada now seeks to preserve while pushing toward global competitiveness.
The next chapters in Italy’s luxury narrative may hinge on legacy brands like Armani and Dolce & Gabbana, still family-owned and unlisted. Should they join forces or be brought under an Italian-led group, the dream of a formidable “Made in Italy” luxury champion may finally become reality.
Credit: Reuters
