The Prada Group has closed the acquisition of its Milan fashion rival Versace in a $1.375 billion cash deal, bringing the brand renowned for its sexy, high-voltage silhouettes under the same umbrella as Prada’s “ugly chic” aesthetic and Miu Miu’s youth-focused appeal. The development has been aimed at reviving Versace’s performance following its middling post-pandemic phase under Capri Holdings.
In the following update, it has been reported that the deal has been finalised after all regulatory clearances, as per media reports. Capri Holdings, the parent company of Michael Kors and Jimmy Choo, has said that proceeds from the sale will be directed toward debt repayment. Donatella Versace has welcomed the acquisition through an Instagram post that also commemorated the birthday of her late brother and founder, Gianni Versace.
Lorenzo Bertelli, Prada heir and current group marketing director and sustainability chief, has been positioned to spearhead Versace’s next chapter as executive chairman. He has indicated that he does not foresee immediate executive changes at the 47-year-old brand but has acknowledged that Versace has long underperformed despite being among the world’s most recognisable luxury labels.
Industry experts have noted that the deal has held strategic appeal by uniting “minimalist Prada with maximalist Versace,” ensuring that the two houses do not compete for the same customer base. Analysts have also said that Versace, long past its peak, faces the challenge and opportunity of regaining relevance. The brand has already begun its creative reset under new designer Dario Vitale, who presented his first collection during Milan Fashion Week in September.
Capri Holdings, which acquired Versace for $2 billion in 2018, has struggled to align the brand’s bold DNA with the global shift toward “quiet luxury.” Its chairman John D. Idol has said that Prada is the right partner to lead Versace into a new era. Versace has accounted for 20% of Capri’s 2024 revenue, while Prada has projected that Versace will contribute 13% to the group’s pro-forma revenues.
Prada has already started integrating Versace into its Italian manufacturing operations, a cornerstone of its identity. At the group’s Scandicci leather goods factory, preparations have been underway to incorporate Versace products into the production line. The brand’s in-house academy, which has trained hundreds of artisans over the past 25 years, has continued to expand its capacity as Prada strengthens investments in its supply chain across Italy and the UK.
The Prada Group has invested 60 million euros this year across its manufacturing network, adding new production facilities and expanding existing ones, following a cumulative 200 million euros invested between 2019 and 2024.
