In a major shake-up of the luxury fashion world, Italian powerhouse Prada has announced its acquisition of iconic rival Versace for a hefty €1.25 billion ($1.39 billion). The deal, finalized Thursday, positions Prada as a formidable player in the battle against industry titans like France’s LVMH and Kering, as the sector faces global challenges.
Prada’s chairman, Patrizio Bertelli, expressed excitement about the new partnership, highlighting shared values of creativity, craftsmanship, and heritage between the two brands. “We are delighted to welcome Versace to the Prada Group,” he said, underscoring the promise of a bright future together.
Versace’s journey has seen highs and lows, including Capri Holdings’ purchase of the brand for €1.83 billion in 2018. However, following a slump in sales, the Milan-based label found itself on the auction block, entering exclusive negotiations with Prada in late February. The acquisition price was notably reduced from an initial expectation of $1.6 billion, reflecting the recent market volatility.
In a key move signaling change, Donatella Versace stepped down as the brand’s creative director after three decades, with Dario Vitale, formerly of Prada’s younger-focused Miu Miu, taking over. Despite the shift, Donatella, who turns 70 this May, will remain with Versace as the brand’s chief ambassador.
With this acquisition, Prada is set to create a luxury powerhouse generating over €6 billion in revenue, fueling its ambitions to compete with the global giants of the fashion world.
