Prada says it has purchased fashion rival Versace

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MILAN — The Prada group said Tuesday it has officially acquired Milan-based fashion rival Versace in a deal valued at 1.25 billion euros (nearly $1.4 billion) that brings the fashion house known for its sexy silhouettes under the same roof as Prada's “ugly chic” aesthetic and Miu Miu's youthful appeal.

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The long-awaited deal is expected to revive Versace's fortunes after middling post-pandemic performance under US luxury brand group Capri Holdings.

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Prada said in a one-line statement that the acquisition was completed after receiving all regulatory approvals.

The future of Versace

Prada heir Lorenzo Bertelli will lead Versace's next phase as executive chairman, as well as group marketing director and head of sustainability.

The son of creative director Miuccia Prada and longtime Prada Group chairman Patrizio Bertelli said he does not expect any quick leadership changes at Versace. But Bertelli said the company, which is one of the world's top 10 most recognizable brands, has long lagged in the market.

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Prada stressed that the 47-year-old Versace brand offers “significant untapped growth potential.”

Versace is in the midst of a creative relaunch under new designer Dario Vitale, who presented his first collection at Milan Fashion Week in September. He was previously head of design at Miu Miu, but his move to Versace was unrelated to the Prada deal, executives said.

Capri Holdings, which owns Michael Kors and Jimmy Choo, paid $2 billion for Versace in 2018 but has struggled to position Versace's bold profile in the recent era of “quiet luxury.”

Versace accounted for 20% of Capri Holdings' 2024 revenue of €5.2 billion. An analyst presentation on the Prada deal said Versace would represent 13% of Prada Group's pro forma revenue, with Miu Miu representing 22% and Prada 64%. The Prada group, which also includes Church shoes, reported revenue growth of 17% to 5.4 billion euros last year.

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Prada's own production.

The Prada group has already begun preparations to incorporate its rival Versace into its Italian production system, a point of pride for the group.

“When making a bag for a brand, the know-how is the same,” Bertelli told reporters last week at the group's leather goods factory Scandicci, which already makes bags for the Prada and Miu Miu brands and will soon add Versace.

The Prada group has invested €60 million in its supply chain this year, including a new leather goods factory near Siena, a new knitting factory near Perugia, as well as increasing production at its Church's shoe factory in the UK and expanding another Tuscan factory. This is in addition to 200 million euros of investment in the period 2019-2024.

Prada's efforts include the creation of an academy that has trained some 570 new artisans over the past 25 years in its own training academy, operating in the regions of Tuscany, Marche, Veneto and Umbria.

Last year, Prada hired 70% of the 120 artisans trained at the academy. This year the number of interns increased by 28% to 152 people.

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