Prada Shells Out $1.4 Billion to Bring Versace Home

The Versace deal comes after Andrea Guerra became Prada's CEO in 2023

- Reuters

Prada's deal to buy Versace revives hopes for a 'Made in Italy' luxury champion after many other family-founded brands ended up in French, Swiss, or US hands, and comes as many Italian groups are outperforming the struggling sector.

The $1.375 billion deal brings one of fashion's best-known Italian labels back under Italian control after it was sold to US-listed Capri Holdings, then known as Michael Kors, for $2.15 billion including debt in 2018.

Despite Italy accounting for 50% to 55% of global personal luxury goods production, according to consultancy Bain's estimates, the country lacks a group with a scale that matches up to French players such as LVMH and Gucci-owner Kering.