In a landmark deal reshaping the global luxury fashion landscape, Italian fashion house Prada has officially completed its acquisition of the iconic brand Versace for a staggering sum of approximately $1.51 billion. This move consolidates two of Italy's most prestigious fashion names under one corporate umbrella.
The Deal's Long Road to Completion
The acquisition, first agreed upon in April, finally materialised after earlier plans for Versace's parent company, Capri Holdings, to be sold to Tapestry Inc. collapsed. That deal fell apart due to significant antitrust challenges from regulators. Lorenzo Bertelli, son of Prada founders Miuccia Prada and Patrizio Bertelli, revealed that discussions between the parties had been ongoing for a considerable time.
"There had already been contacts during the Covid period, and there were talks even before Capri's sale to Tapestry," Bertelli stated. "When that deal fell through over antitrust issues, we came back and tried to speed things up. It was something that had been in the works for a long time."
New Leadership and Strategic Fit
With the acquisition now final, Lorenzo Bertelli is poised to take on the role of executive chairman at Versace. He was a key proponent of the deal, citing Versace's strong strategic fit for the Prada group. Bertelli emphasised that the brand met two critical criteria: it presented a manageable financial risk and possessed immense, enduring global brand value.
Founded in 1978 by the late Gianni Versace in Milan, Versace now joins Prada and Miu Miu within the group's portfolio. This transition follows closely on the heels of a major creative change at Versace. After an illustrious three-decade tenure, Donatella Versace recently stepped aside from her position as creative chief.
A New Creative Direction
Succeeding Donatella Versace is Dario Vitale, who previously served as the design director at Miu Miu, another brand under the Prada group. This appointment signals a new creative chapter for Versace, potentially infusing it with fresh design perspectives while aiming to preserve its distinctive, bold identity.
The acquisition represents one of the most significant consolidations in the high-fashion industry, positioning the Prada group to compete more aggressively on a global scale against giants like LVMH and Kering. For consumers and investors alike, this merger marks the beginning of a new era for these legendary Italian fashion houses.
