The Prada Group has completed its acquisition of Versace in a $1.375 billion cash deal, bringing the long-established Milan label under the same corporate umbrella as Prada and Miu Miu. The purchase is aimed at strengthening Prada’s portfolio while setting the stage for a new chapter at Versace, which has struggled to regain momentum in recent years.
Versace, founded in 1978 by Gianni Versace, is known for its bold, high-impact aesthetic that contrasts sharply with Prada’s more intellectual design language. The acquisition allows Prada to diversify its brand mix while positioning Versace for a performance reboot following a period of middling results under Capri Holdings.
According to reports, the transaction received all required regulatory approvals before closing. Capri Holdings, also the owner of Michael Kors and Jimmy Choo has stated that funds from the sale will be used to reduce debt and reinforce its balance sheet.
The handover sparked emotional reflection from Donatella Versace, who acknowledged the significance of the closing date coinciding with her late brother’s birthday in a post shared on Instagram.
Looking ahead, Lorenzo Bertelli, Prada heir and current group marketing director and sustainability lead, is set to guide Versace’s strategic direction as executive chairman. He has indicated that no major leadership changes are expected in the near term but has noted that the brand has underperformed despite its global recognition.
Industry analysts say the acquisition brings together two houses with different creative languages but no direct customer overlap making the deal strategically attractive. Versace now enters a rebuilding phase as it works to reestablish relevance, supported by a creative shift already underway under designer Dario Vitale, who debuted his first collection in September during Milan Fashion Week.
Capri Holdings purchased Versace for $2 billion in 2018 but faced challenges aligning the brand’s inherently expressive identity with the market’s transition toward quieter luxury aesthetics. Capri’s chairman, John D. Idol, has expressed confidence that Prada is better positioned to steer Versace into its next phase.
Prada has already begun integrating Versace into its manufacturing network, a key strength of the group. Preparations are in progress at the Scandicci leather goods facility to incorporate Versace products, supported by the company’s long-standing training academy for artisans. This comes after significant investment into Prada’s production infrastructure, including €60 million allocated this year and more than €200 million between 2019 and 2024.
With the acquisition now complete, Versace enters a new operational environment backed by Prada’s manufacturing expertise, financial stability, and long-term strategic planning.
