Prada Acquires Versace in Major Shift for Italian Luxury Fashion
Prada, one of Italy's most iconic fashion houses, has finalized the acquisition of Versace, another renowned Italian luxury label. This strategic move marks the end of Versace's nearly five decades of independence since its founding by Gianni Versace. The acquisition was completed following approval from all necessary regulatory authorities in Milan.
Under the terms of the deal, Prada has purchased all outstanding shares of Versace from Capri Holdings, the American group previously owning the brand. The transaction is valued at approximately 1.25 billion euros, slightly below the initial figure of 1.5 billion euros that had circulated in earlier negotiations. Despite the change in ownership, the Versace name will be retained, preserving its storied legacy within the global fashion industry.
Versace, established in 1978, had operated under Capri Holdings, which also owns other prominent brands such as Michael Kors and Jimmy Choo. Prada, with a longer history dating back to 1913, has expanded its own portfolio over the years to include brands like Miu Miu and Church's, reinforcing its presence in the premium footwear and accessories market.
The acquisition is part of a broader effort by Prada to strengthen its competitive position against international luxury conglomerates, particularly France's LVMH. By integrating Versace, Prada aims to consolidate Italian fashion heritage and scale up to meet the challenges posed by global industry leaders. Discussions around the acquisition had been ongoing for several months, culminating in formal approval by European regulatory authorities earlier in the year.
The Italian press has described this development as a union of two leaders within the nation's fashion ecosystem. The industry landscape continues to evolve, with attention now turning to other high-profile Italian brands and their future direction.
Versace's visibility has been significantly enhanced in recent years, partly due to popular culture references such as the film adaptation of 'The Devil Wears Prada.' The upcoming sequel to the film, featuring prominent Hollywood actors and filmed in Milan, is expected to further reinforce the connection between cinematic glamour and Italian fashion houses.
Prada's leadership has expressed a commitment to honoring the creative vision and aesthetic established by Gianni Versace. The brand will now be managed by Lorenzo Bertelli, the son of Patrizio Bertelli and Miuccia Prada, signaling a generational transition in leadership. Donatella Versace, who guided the creative direction of the brand following her brother's passing, has stepped down from her executive role but remains involved as Chief Brand Ambassador. The creative leadership at Versace now falls to Dario Vitale, who previously worked with Prada's Miu Miu line.
Today, Versace operates over 200 stores worldwide, with its products available in more than 600 retail locations globally. The brand's extensive offerings include apparel, footwear, handbags, eyewear, watches, and fragrances. The integration into Prada's portfolio is expected to drive further growth and innovation while maintaining the distinct DNA that has defined Versace for decades.