Prada Completes Acquisition of Versace in a transformative luxury deal

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Chris J. Ratcliffe / Bloomberg via Getty Images

Prada Group confirmed on Tuesday that it has completed the purchase of Versace in a deal valued at 1.25 billion euros, uniting the iconic Versace brand with Prada and Miu Miu under one umbrella. The acquisition, which follows Capri Holdings’ prior ownership of Versace, positions Prada to leverage its expansive manufacturing network and luxury platform to relaunch Versace’s growth trajectory.

Prada indicated in a concise statement that all regulatory clearances have been satisfied and the deal is now closed. Lorenzo Bertelli, heir to the Prada dynasty, will assume the role of executive chairman at Versace, augmenting his responsibilities as group marketing director and sustainability chief. He signaled a cautious approach, noting that there were no immediate plans for sweeping executive changes at Versace, while acknowledging the brand’s historical underperformance in recent years.

Industry observers highlight Versace’s untapped growth potential within a broader Prada ecosystem. The brand has been undergoing a creative relaunch under new designer Dario Vitale, who unveiled his inaugural collection during Milan Fashion Week. Vitale’s appointment is not tied to the acquisition, executives emphasized, and he will continue to lead the label’s creative direction.

Capri Holdings acquired Versace in 2018 for about 2 billion dollars, but recent market dynamics have challenged the bold, conspicuous aesthetic Versace has championed amid the shift toward quieter luxury. Within Capri’s portfolio, Versace accounted for a meaningful portion of revenue; Prada’s analysis suggests Versace will contribute to roughly 13 percent of pro-forma revenues post-merger, with Miu Miu at about 22 percent and Prada at 64 percent.

Prada also outlined its ongoing manufacturing integration plans, noting that Versace will join its established leather goods production network. The group outlined continued investments in its supply chain, including new facilities and expansions aimed at strengthening domestic capabilities and efficiency across its brands, alongside a robust in-house artisan training program that has produced hundreds of skilled workers over the years.