Prada Acquires Versace, Marking a Major Shift in Italian Luxury
Prada has officially acquired Versace in a $2.2 billion deal, bringing the iconic brand back under Italian control. This move signals a strategic expansion for Prada and a shift in the luxury fashion landscape.
Prada has officially acquired Versace in a $2.2 billion deal [Source: PRADA Group]
Versace’s Return to Italy After Years Under US Ownership
Versace was bought by US-based Capri Holdings in 2018 for $3.4 billion. The acquisition was part of Capri’s ambition to create a global luxury powerhouse, but the plan struggled to take off. Now, Prada sees an opportunity to revive Versace’s legacy while strengthening its own position.
What the Deal Means for Prada and Versace
Prada Group Chairman Patrizio Bertelli described the acquisition as a long-term strategy. “We aim to continue Versace’s legacy, celebrating and re-interpreting its bold and timeless aesthetic,” he said.
Prada believes Versace has strong untapped potential. The company said Versace’s distinctive aesthetic “constitutes a strongly complementary addition” to its portfolio, which includes Prada and Miu Miu.
How the Deal Was Made
Prada secured the purchase at a lower-than-expected price due to market uncertainty. Insiders say the original valuation was around $2.5 billion, but Prada negotiated a discount. The deal will be funded with $2.4 billion in new debt, approved by the boards of Prada and Capri Holdings.
Donatella Versace Steps Down, Dario Vitale Takes Over
Donatella Versace, who led the brand’s creative direction for 27 years, recently stepped down. Dario Vitale, a former image director at Miu Miu, will take over as creative director.
Versace remains positive about the change. “Gianni and I have always had a huge admiration for Miuccia, Patrizio and their family,” she said. “I am honoured to have the brand in the hands of such a trusted Italian family business.”
She will stay on as chief brand ambassador, focusing on red-carpet dressing and philanthropic work.
The Bigger Picture: Italy’s Push for a Luxury Powerhouse
Italy produces over half of the world’s luxury goods, but French and Swiss companies dominate the market. LVMH and Kering lead the sector, with brands like Louis Vuitton, Gucci, and Dior under their control.
Italy lacks a single fashion giant to compete at that level. Prada, with Versace in its portfolio, aims to change that.
Fashion expert Achim Berg said, “Prada’s ambition to become a leading Italian luxury conglomerate is a significant move in a market dominated by French groups.”
Can Prada and Versace Coexist?
Prada and Versace have historically been rivals. Prada is known for its intellectual, minimalist designs, while Versace embraces bold, glamorous fashion.
Despite their differences, Prada CEO Andrea Guerra sees potential in combining these aesthetics. “Our organisation is ready and well positioned to write a new page in Versace’s history,” he said.
What’s Next?
The deal is expected to close in the second half of the year. It must clear regulatory approvals, but industry experts believe it will proceed smoothly.
With Versace now under Prada’s wing, the fashion world watches closely. Will this merger create a new Italian powerhouse, or will the brands struggle to find a balance? Either way, the luxury industry will never be the same again.
