The Prada Group has finalized its acquisition of Versace, a competitor based in Milan, in a cash transaction valued at $1.375 billion US ($1.93 billion Cdn). This move aligns the fashion house, celebrated for its bold silhouettes, with Prada’s “ugly chic” style and Miu Miu’s focus on youthful aesthetics.
This eagerly awaited acquisition is anticipated to rejuvenate Versace’s prospects, following a lackluster performance in the aftermath of the pandemic while under the ownership of the U.S. luxury group Capri Holdings.
Prada confirmed the completion of the acquisition with a brief statement, noting that all necessary regulatory approvals had been obtained. Capri Holdings, which also owns Michael Kors and Jimmy Choo, indicated that the proceeds would be utilized to reduce its debt.
Donatella Versace expressed her enthusiasm for the deal in an Instagram post, coinciding with the birthday of her late brother and the brand’s founder, Gianni Versace.
“Today marks your day, as well as the day Versace joins the Prada family. I can only imagine the smile on your face,” she shared alongside a vintage photograph from 1996 featuring Gianni Versace with Miuccia Prada.
The Path Ahead for Versace
Lorenzo Bertelli, the heir to the Prada legacy, will lead the next chapter for Versace as executive chairman, while continuing his responsibilities as the group’s marketing director and sustainability officer.
The son of co-creative director Miuccia Prada and longtime chairman Patrizio Bertelli stated that he does not foresee immediate organizational changes at Versace, although he acknowledged that the brand, recognized as one of the top 10 globally, has historically underperformed in the market.
Prada emphasized that the 47-year-old Versace brand possesses “considerable untapped growth potential.”
Luca Solca, managing director for luxury at Sanford C. Bernstein, remarked on the appeal of the merger, describing it as a fusion of “minimalist Prada with maximalist Versace,” indicating that the two brands cater to different customer bases.
Trainees in leather goods at the Prada factory in Scandicci, Italy. (Gregorio Borgia/The Associated Press)
According to Solca, Versace has “long surpassed its peak.” He noted, “The task and the opportunity lie in restoring its relevance…. They will need to create something that rekindles the brand’s appeal, desirability, and intrigue.”
A creative revitalization has already commenced at Versace under new designer Dario Vitale, who unveiled his inaugural collection during Milan Fashion Week in September. Previously the head of design at Miu Miu, his transition to Versace has been clarified by executives as unrelated to the Prada acquisition.
The runway show garnered mixed reviews, but the collection—vibrant and reminiscent of the 1980s—received positive feedback from buyers. “This appears to be a promising initial step,” stated Solca.
A 13-year-old girl from Cross Lake First Nation knew one day she would walk international runaways. Modelling in Winnipeg and Toronto led to New York City, and soon Teryn Monias will walk Paris Fashion Week 2025.
Moving On from the Past
In 2018, Capri Holdings acquired Versace for $2 billion US but has faced challenges in establishing the brand’s striking identity amid the current trend of “quiet luxury.”
John D. Idol, chairman of Capri Holdings, remarked that “Prada is the perfect partner to steer this renowned luxury label into its forthcoming phase of growth.”
Versace accounted for 20 percent of Capri Holdings’ projected revenue of 5.2 billion euros ($8.4 billion Cdn) for 2024.
Prada indicated when announcing the acquisition in April that Versace would make up 13 percent of the Prada Group’s pro-forma revenues, with Miu Miu contributing 22 percent and Prada itself at 64 percent. The Prada Group, which also encompasses Church’s footwear, recorded a 17 percent increase in revenues, reaching 5.4 billion euros ($8.8 billion Cdn) last year.
Models showcase the Prada Spring/Summer 2026 collection during Milan Fashion Week, Sept. 25. (Alessandro Garofalo/Reuters)
The Prada Group has already initiated plans to integrate its rival Versace into its Italian manufacturing operations, which is a point of pride for the group.
“Whether crafting a bag for one brand or another, the expertise remains consistent,” Bertelli informed reporters last week at the group’s Scandicci leather goods factory, which currently produces bags for Prada and Miu Miu, and will soon extend to include Versace.