Prada Finalizes $1.4 Billion USD Acquisition of Versace
Italian titans unite.
Summary
- Prada finalized the purchase of Versace for approximately $1.4 billion USD, capitalizing after the rival Tapestry deal was blocked by antitrust regulators
- Lorenzo Bertelli will become Executive Chairman, taking over leadership after Donatella Versace stepped down as creative chief
- The strategic acquisition was rooted in the brand’s low financial risk and world-leading global brand awareness
The fashion world has been permanently reshaped as the Prada Group completed its major acquisition of Versace in a $1.375 billion USD cash deal. This transaction places the house of bold, sensual glamour under the same corporate umbrella as Prada’s intellectual minimalism and Miu Miu’s playful, youth-driven designs. This deal was achieved after the rival French deal to sell Capri Holdings to Tapestry was blocked due to antitrust challenges. Prada had long coveted the brand, pursuing the deal for several years before the opportunity arose.
The highly anticipated deal is a strategic move intended to dramatically relaunch Versace’s financial fortunes, which struggled for viability under the previous ownership of Capri Holdings (the parent company of Michael Kors). For the Prada Group, this consolidation creates a formidable luxury conglomerate capable of competing with the world’s largest fashion entities.
The announcement was met with an emotional co-sign from Donatella Versace, who marked the occasion on Instagram, linking the new partnership to the legacy of her late brother, Gianni. She shared a vintage photo of Gianni with Miuccia Prada, writing, “Today is your day and the day Versace joins the Prada family. I am thinking of the smile you would have had on your face.” Capri Holdings confirmed the funds from the sale would be utilized to reduce its company debt. The union of these distinct Italian megabrands promises to inject Versace with the energy and stability required to return to the forefront of global style. Versace’s new era will be led by Prada heir Lorenzo Bertelli as the new executive chairman. He is also the son of co-creative director Miuccia Prada and longtime Prada Group chairman Patrizio Bertelli. Dario Vitale, a former design director at Miu Miu, assumed the top creative role shortly before the deal closed, succeeding Donatella Versace after her nearly three-decade tenure.
View this post on Instagram
