Prada Group has confirmed the completion of its headline-making acquisition of Milan luxury rival Versace in a €1.25 billion (nearly $1.4 billion) deal, sealing one of the most consequential shakeups in the global fashion industry this decade.
The group announced Tuesday that the transaction had passed all regulatory approvals, bringing the house famed for bold glamour under the same umbrella as Prada’s minimalist “ugly chic” aesthetic and Miu Miu’s youth-driven luxury.
Prada heir Lorenzo Bertelli currently the group’s marketing director, sustainability chief, and incoming executive chairman will oversee Versace’s next chapter. He has said he does not plan immediate executive changes but noted that the brand, despite ranking among the world’s 10 most recognised labels, has long underperformed its market potential.
Prada stressed that Versace’s 47-year legacy offers “significant untapped growth potential,” and expects the acquisition to reposition the brand after years of inconsistent performance under US-based Capri Holdings.
Versace is already undergoing a creative reshaping under new artistic director Dario Vitale, who debuted his first collection at Milan Fashion Week in September. Vitale, formerly head of design at Miu Miu, joined Versace before the acquisition and his appointment is unrelated to the Prada takeover, executives said.
Capri Holdings, also owner of Michael Kors and Jimmy Choo, paid $2 billion for Versace in 2018 but struggled to align its flamboyant identity with the global shift toward “quiet luxury.” Versace accounted for 20% of Capri’s 2024 revenue of €5.2 billion.
Under Prada Group’s pro-forma revenue structure, Versace will contribute 13%, Miu Miu 22%, and Prada 64%. The group, which includes Church’s footwear, reported €5.4 billion in revenue last year, a 17% increase.
Prada has already begun integrating Versace into its Italian production system, a core source of pride for the group. Bertelli noted during a recent visit to Prada’s Scandicci factory that craftsmanship standards remain consistent across brands, saying, “Making a bag for one brand or another, the know-how is the same.”
The company has invested €60 million in its supply chain this year alone, including a new leather-goods facility near Siena, a knitwear factory near Perugia, and increased output at Church’s in the UK and a major Tuscan plant. These follow €200 million invested between 2019 and 2024.
Prada’s internal academy, operating across Tuscany, Marche, Veneto, and Umbria, has trained roughly 570 artisans over 25 years. Last year, 70% of the 120 trainees were hired internally. This year, the academy expanded further, training 152 artisans a 28% increase.
With Versace now in-house, the group aims to expand production, streamline supply chains, and strengthen Italy’s luxury manufacturing tradition while pushing for renewed global momentum.
Erizia Rubyjeana
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