Prada completes $1.37 bn takeover of Versace [Photo: X]
The Prada Group has officially completed its acquisition of Versace in a deal worth $1.37 billion, bringing together two of Italy’s most iconic fashion houses. With this merger, Versace returns to Italian ownership after several years under US-based Capri Holdings. This marks a major consolidation in the global luxury fashion industry.
Prada struck the agreement in April 2025, offering around €1.25 billion (about $1.37 billion) to acquire 100% of Versace from Capri Holdings.
Capri Holdings said the sale would help reduce its debt and improve its financial flexibility, allowing it to refocus on its remaining brands like Michael Kors and Jimmy Choo.
For Prada, the acquisition brings “complementary brand identities.” The house hopes to leverage Versace’s bold glamour alongside Prada’s elegant minimalism — offering a wider luxury spectrum to global customers.
With the acquisition now complete, Prada heir Lorenzo Bertelli will become Executive Chairman of Versace. That signals a new chapter for the brand under Prada’s stewardship — with continuity promised but also new ambitions.
Versace’s creative direction is already evolving. The brand recently appointed Dario Vitale (formerly of Miu Miu) as its creative head, replacing long-time creative chief Donatella Versace. The shift reflects a broader plan by Prada to stabilize and revive Versace’s appeal under renewed investment and strategic planning.
Return to Italian ownership: Versace’s shift back from an American conglomerate to an Italian house underscores a trend toward restoring European roots in heritage luxury. This may resonate well with customers valuing “authenticity” and “heritage.”
Diversified luxury portfolio: With Prada, Miu Miu, and now Versace under one roof, the group covers a broader range of luxury, from refined minimalism to maximalist glamour. This helps target different customer segments without overlap.
Potential for growth and revival: Analysts believe that with Prada’s financial muscle, supply-chain strength, and brand discipline, Versace may regain momentum. The new ownership promises better manufacturing support, global distribution reach, and disciplined pricing strategies.
Despite the optimism, it won’t be smooth sailing: Versace has struggled in recent years with slow sales and shifting market trends. Global luxury buyers now often favour “quiet luxury” or understated styles — which clash with Versace’s signature flamboyance. Turning that around will require careful repositioning without losing the brand’s identity.
Integration also poses risks. Bringing together different brand styles, supply chains, and design philosophies under one group requires balance. Prada must ensure that Versace stays distinct — not diluted — while benefiting from shared resources.
