Prada is closed on the Mega $ 2.5 billion deal to acquire the luxurious retail competitor

• Prada Group is looking to buy Versace from Capri Holdings for $ 1.6 billion (about $ 2.5 billion).
• The deal is the opposite of the direction of Italian fashion houses that fall into foreign hands.
• Prada’s strong financial statements, including 17 % revenue growth to $ 5.8 billion, makes investment a smart step.

Dancing the acquisition between luxury fashion brands is not new – just ask LVMH, whose strategic genius built an empire worth $ 300 billion through calculated purchases. Now, a new play for power will happen where the Brada Group wants to get Versace From Capri Holdings in a $ 1.6 billion deal (about $ 2.5 billion) can decrease just this month.

If this happens, the acquisition will not only expand the Prada Empire, but also reflects a long -term trend of brands of Italian heritage sliding into foreign hands.

Expand the financial power of the expansion

Prada does not enter into this without a strong foundation. In 2024, the Fashion House ended with an increase of 17 % revenues and reached 5.8 billion US dollars, which increased Miu Miu 93 % sales growth. With such numbers, the brand is confident and in a major investment moves.

On the other side, Versace trip is below Capri Holding It was less sparkling. Despite the 2018 CAPRI acquisition of the brand for $ 2.1 billion, Versace struggled due to a decrease in revenues of 15 % in the last quarter of 2024, making the brand lands at $ 193 million. Capri Optimistly Prossivility is the possibility of Versace’s revenue to $ 900 million by 2028, with dreams of $ 1.5 billion in the long term. However, the current market conditions make these goals look like an extension.

Strategic effects and response to the market

Brada’s acquisition can help take advantage of the high Versace market, which in turn will improve the competitive site of Prada against luxury giants such as LVMH and KERING. More importantly, it maintains an Italian brand in Italian hands – which was not always.

However, this will not be a picnic in the garden. The dropping of $ 1.6 billion on Versace is just the opening step. The real challenge will be to restore the brand to its full potential. This means new creative guidance and better marketing.

Regardless, investors still love the idea. Prada’s shares increased by 3.5 % on Hong Kong exchange after revealing the potential deal news. It is clear that the market sees the benefit because the Discovered Prada leadership with the strong brand’s identity in Versace can be a profitable formula.