Prada Group Acquires Fashion Rival Versace in $1.4 Billion Deal

MILAN (AP) Prada Group confirmed on Tuesday that it has acquired Milan-based fashion competitor Versace in a deal valued at 1.25 billion euros (around $1.4 billion). This acquisition brings the brand known for its bold, seductive designs under the same umbrella as Pradas distinctive ugly chic style and Miu Mius youthful energy.

The transaction, which has been highly anticipated, aims to rejuvenate Versace following moderate performance after the pandemic while it was part of U.S. luxury conglomerate Capri Holdings. Prada issued a brief statement confirming that the purchase was finalized after obtaining all necessary regulatory approvals.

Lorenzo Bertelli, Prada heir, will oversee Versaces next chapter as executive chairman, while continuing his responsibilities as Prada Group marketing director and head of sustainability. Bertelli, the son of co-creative director Miuccia Prada and longtime chairman Patrizio Bertelli, indicated that he does not plan immediate executive changes at Versace. He also emphasized that the brand, ranked among the worlds top ten most recognized fashion labels, has been underperforming in recent years.

Prada highlighted that the 47-year-old Versace brand holds considerable untapped potential. Versace is undergoing a creative revitalization under new designer Dario Vitale, who debuted his first collection at Milan Fashion Week in September. Vitale, formerly head of design at Miu Miu, joined Versace independently of the Prada acquisition.

Capri Holdings, which owns Michael Kors and Jimmy Choo, purchased Versace for $2 billion in 2018, but faced challenges positioning the brand in the current quiet luxury market. In 2024, Versace contributed 20% of Capri Holdings total revenue of 5.2 billion euros. According to Pradas analysis, post-acquisition, Versace is expected to account for 13% of Prada Groups combined revenues, with Miu Miu at 22% and Prada at 64%.

The Prada Group, which also includes Churchs footwear, reported a 17% revenue increase last year, reaching 5.4 billion euros. Preparations are already underway to integrate Versace into Pradas Italian manufacturing network, a key strategic focus for the company. Making a bag for one brand or another, the know-how is the same, Bertelli explained at the groups Scandicci leather goods facility, which currently produces bags for Prada and Miu Miu and will soon include Versace.

This year, Prada invested 60 million euros in its supply chain, including establishing a new leather factory near Siena, a knitwear facility near Perugia, expanding Churchs footwear production in Britain, and enlarging another factory in Tuscany. These investments add to 200 million euros committed between 2019 and 2024.

Additionally, Pradas academy has trained roughly 570 artisans over the past 25 years across Tuscany, Marche, Veneto, and Umbria. Last year, 70% of the 120 graduating artisans were hired by the group, and this year the number of trainees increased by 28% to 152.

Author: Sophia Brooks