The acquisition of Milan’s Versace by the Prada Group has been finalized in a cash deal worth $1.375 billion US ($1.93 billion Cdn). This move brings together Versace’s reputation for sexy designs with Prada’s “ugly chic” style and Miu Miu’s youthful appeal. The purchase is expected to revitalize Versace’s business, which has seen lackluster performance following the pandemic period under Capri Holdings.
Prada confirmed the completion of the acquisition after obtaining all necessary regulatory approvals. Capri Holdings, the owner of Michael Kors and Jimmy Choo, stated that the proceeds from the deal would be used to reduce debt. Donatella Versace expressed her approval of the acquisition in an Instagram post, coinciding with the birthday of the brand’s late founder, Gianni Versace.
Lorenzo Bertelli, the heir of Prada, will lead Versace as the executive chairman, in addition to his existing roles within the group. He emphasized the potential for growth within the 47-year-old Versace brand, which has been underperforming in the market. Analysts see the merger as a strategic move, combining Prada’s minimalist approach with Versace’s maximalist style, targeting different customer segments.
Versace has already commenced a creative rejuvenation under new designer Dario Vitale, who showcased his debut collection during Milan Fashion Week. The collection, inspired by the 1980s, received positive feedback from buyers. The integration of Versace into Prada’s manufacturing system is already in progress, leveraging the Italian craftsmanship that is a hallmark of both brands.
The partnership between Prada and Versace marks a significant shift for the luxury fashion industry, positioning Versace for a new era of growth and relevance.