A Landmark Deal in Italian Fashion
The Prada Group has officially acquired Milan rival Versace in a $1.375 billion cash deal, bringing together Prada’s minimalist “ugly chic,” Miu Miu’s youthful edge, and Versace’s bold glamour under one luxury umbrella. The acquisition follows all required regulatory approvals.
Versace Set for a Relaunch
The deal is expected to revive Versace after years of uneven performance under Capri Holdings, which will use the sale proceeds to pay down debt. Donatella Versace celebrated the announcement on Instagram, posting a tribute to her late brother, Gianni Versace, and welcoming the brand’s new chapter with Prada.
Leadership and Creative Direction
Prada heir Lorenzo Bertelli will guide Versace as executive chairman while maintaining his group roles in marketing and sustainability. He has no immediate plans for major leadership changes but acknowledged Versace has long underperformed despite being one of the world’s most recognized fashion brands.
Versace is currently undergoing a creative reset under designer Dario Vitale, who debuted his first collection in September during Milan Fashion Week.
Market Impact and Revenue Breakdown
Capri Holdings originally bought Versace for $2 billion in 2018. Versace accounted for 20% of Capri’s 2024 revenue. Under the Prada Group, the brand is expected to make up 13% of combined pro-forma revenues, while Prada accounts for 64% and Miu Miu for 22%.
Expanding Italian Manufacturing
Prada has already begun integrating Versace into its Italian production network, emphasizing shared craftsmanship across brands. The group continues to invest heavily in its manufacturing base, including new leather goods and knitwear factories and an expanded artisan training academy that has produced hundreds of skilled workers.
With the acquisition now complete, Prada aims to unlock what it calls Versace’s “significant untapped growth potential” and usher the iconic brand into a new era.
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