Prada acquires Versace in $1.375 billion deal

Italian luxury fashion group Prada has completed the acquisition of Milan-based rival Versace in a $1.375 billion cash deal. The transaction was finalised after receiving all regulatory approvals and coincided with the birthday of Versace founder Gianni Versace on December 2.

The deal has been in progress for the past eight months and was delayed by regulatory reviews. Versace, previously part of U.S. luxury group Capri Holdings, had experienced underwhelming performance since the pandemic. The company said the proceeds from the sale would be used to reduce debt. It had previously explored a sale to Tapestry, but talks were halted over antitrust concerns.

Donatella Versace, Gianni Versace’s sister and current creative director of the brand, marked the deal in an Instagram post. “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. I miss you, always,” she wrote, sharing a 1996 photo of Gianni Versace with Miuccia Prada.

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A post shared by Donatella Versace (@donatella_versace)

Following the acquisition, Prada’s heir Lorenzo Bertelli is expected to oversee Versace as executive chairman. He will also serve as group marketing director and sustainability chief. Bertelli has said Prada had long pursued the deal, viewing Versace as financially manageable and strategically valuable given its global brand recognition.

Prada now oversees three labels: its flagship Prada brand, the younger-focused Miu Miu, and the newly acquired Versace. The acquisition is seen as a move to revitalise Versace and expand Prada’s presence in the global luxury market.