Prada group completes $1.4 billion Versace acquisition

The Prada Group has completed its long-anticipated acquisition of fellow Milan fashion house Versace in a deal valued at 1.25 billion euros (nearly $1.4 billion), according to  The Independent. The purchase places Versace—known for its bold, sensual design codes—alongside Prada’s “ugly-chic” heritage and Miu Miu’s youthful sensibility under the same corporate banner.

Prada confirmed the closing of the deal in a brief statement, noting that all regulatory approvals had been secured. The acquisition is expected to revive Versace’s market performance following a mixed post-pandemic period under Capri Holdings.

Versace’s Direction Under Prada

Lorenzo Bertelli, the heir to the Prada empire and the group’s marketing and sustainability chief, will assume the role of executive chairman at Versace. As reported by The Independent, he said he does not plan immediate executive shake-ups but acknowledged that Versace—despite being among the world’s most recognized labels—has been underperforming and retains “significant untapped growth potential.”

Versace is already undergoing a creative shift under new designer Dario Vitale, who unveiled his first collection at Milan Fashion Week in September. Vitale previously worked at Miu Miu, although his move was not connected to the Prada deal.

Capri Holdings, which bought Versace for $2 billion in 2018, has struggled to position the brand during the rise of “quiet luxury.” The Independent notes that Versace accounted for 20% of Capri's 5.2 billion euros in 2024 revenue. Under Prada Group’s structure, Versace is projected to represent 13% of total revenues, with Miu Miu at 22% and Prada at 64%.

Manufacturing and Investment Plans

Prada has already started integrating Versace into its Italy-based manufacturing network. During a visit to the company’s leather goods facility in Scandicci, Bertelli emphasized that the craftsmanship ethos would carry across brands, noting that “the know-how is the same” regardless of label.

The group has invested 60 million euros this year alone into expanding its supply chain, including new leather goods and knitwear factories. These commitments follow 200 million euros spent between 2019 and 2024. Prada has also expanded its artisan training academy, which has prepared more than 570 craftspeople over 25 years. In 2024, the company hired 70% of the academy’s graduating class.

With Versace now officially part of its portfolio, the Prada Group is positioned to steer one of Italy’s most famous luxury houses into a new phase of growth.