The acquisition of Milan fashion brand 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 alluring designs with Prada’s “ugly chic” style and Miu Miu’s youthful appeal. The acquisition is expected to revitalize Versace’s performance after a period of underwhelming results under Capri Holdings.
Donatella Versace expressed her approval of the acquisition in a heartfelt Instagram post commemorating her brother Gianni Versace’s birthday. The post featured a nostalgic photo of Gianni Versace with Miuccia Prada, highlighting the joining of the two iconic brands.
Prada’s heir, Lorenzo Bertelli, will take the helm as Versace’s executive chairman, emphasizing the brand’s significant growth potential. The acquisition aims to leverage the distinct styles of Prada and Versace, catering to different customer segments without direct competition.
Versace has initiated a creative renaissance under new designer Dario Vitale, with a vibrant collection showcased during Milan Fashion Week. The collection, inspired by the 1980s, received positive feedback from buyers, signaling a promising start for the brand’s rejuvenation.
Capri Holdings had purchased Versace for $2 billion US in 2018 but struggled to align the brand with the trend towards understated luxury. Prada’s chairman expressed confidence in guiding Versace towards a new phase of growth, building on its strong legacy within the luxury market.
The integration of Versace into Prada’s manufacturing system is already in progress, leveraging the group’s expertise in Italian craftsmanship. This strategic move underscores Prada’s commitment to maintaining quality and tradition across its portfolio of brands.