The acquisition of Milan fashion icon Versace by the Prada Group has been finalized in a cash deal worth $1.375 billion US ($1.93 billion Cdn). This move brings together Versace’s renowned sexy aesthetic with Prada’s “ugly chic” style and Miu Miu’s youthful appeal. The purchase is expected to revitalize Versace’s fortunes following a period of lackluster performance under Capri Holdings.
Donatella Versace expressed her excitement about the deal in an Instagram post coinciding with the birthday of her late brother and Versace’s founder, Gianni Versace. Lorenzo Bertelli, heir to Prada, will take on the role of executive chairman at Versace, aiming to drive the brand forward without making immediate executive changes. The acquisition is seen as an opportunity to unlock significant growth potential for the 47-year-old Versace brand.
The merging of the minimalist Prada and maximalist Versace is viewed as a strategic move that avoids direct competition for the same customer base. Versace has already initiated a creative reboot under new designer Dario Vitale, with positive feedback on the colorful and nostalgic 1980s-themed collection showcased during Milan Fashion Week. The integration of Versace into Prada’s Italian manufacturing system is underway as part of the group’s operational consolidation.
Capri Holdings, which previously owned Versace, struggled to align the brand with the trend of “quiet luxury.” Prada’s chairman sees the partnership as a way to propel Versace into a new era of growth. Versace contributed significantly to Capri Holdings’ revenue in 2024, representing 20% of the total. The Prada Group foresees Versace accounting for 13% of its revenues, with Miu Miu at 22% and Prada at 64%. The group reported a revenue increase to 5.4 billion euros ($8.8 billion Cdn) last year.