The Prada Versace acquisition has officially closed, bringing one of Milan’s most flamboyant fashion names under the same corporate roof as Prada’s cerebral “ugly chic” and Miu Miu’s youth-focused glamour. Prada Group confirmed the $1.375 billion all-cash deal in a brief statement, saying regulatory approvals had been obtained and the transaction completed, while Capri Holdings — Versace’s former U.S.-based owner — said it would use the proceeds to pay down debt.
The deal ends Versace’s six-year spell inside Capri, which also owns Michael Kors and Jimmy Choo. Capri bought Versace for about $2 billion in 2018, but struggled to translate the label’s high recognition and maximalist image into the kind of steady growth investors now expect in an era dominated by “quiet luxury.”
For Prada, the acquisition is a statement of intent: a bid to build a serious “Made in Italy” luxury group capable of standing up to French-led conglomerates, while unlocking what it calls Versace’s “significant untapped growth potential.”
Underperforming icon, new creative era
Despite being one of the world’s most recognisable luxury brands, Versace has underperformed financially in recent years, operating at a loss and lagging behind more discreet rivals as tastes shifted. Capri has acknowledged the challenge of positioning such a bold, logo-heavy house during a cycle in which understated tailoring and minimalism have dominated runways and social feeds.
The creative reset is already under way. Versace is in the midst of a relaunch under new designer Dario Vitale, who showed his first collection during Milan Fashion Week in September. Vitale previously headed design at Miu Miu, giving him a deep understanding of Prada Group’s design culture, though both sides stress that his move to Versace was agreed before the takeover and not a back-door integration play.
Donatella Versace, who steered the brand creatively for decades after the 1997 murder of her brother Gianni, welcomed the deal publicly. In an Instagram post timed with Gianni’s birthday, she wrote that “today is your day and the day Versace joins the Prada family,” sharing a 1979 photograph of a young Gianni Versace with Miuccia Prada — a reminder that the two houses have long shared the same Milanese fashion streets, if not the same aesthetic.
Lorenzo Bertelli steps in as Versace’s executive chairman
Strategically, the Prada Versace acquisition puts Lorenzo Bertelli, Prada heir and current marketing and sustainability chief, in a central role. Prada has confirmed that he will serve as executive chairman of Versace while retaining his group responsibilities.
Bertelli, son of co-creative director Miuccia Prada and chairman Patrizio Bertelli, has signalled that he is not planning swift executive shake-ups at Versace. At the same time, he has been blunt about the brand’s commercial underperformance relative to its global recognition, describing it as a top-ten name by awareness that has failed to translate that status into market share.
Under Capri, Versace accounted for roughly 20% of group revenue in 2024, or about €5.2 billion overall, but its profile did not prevent volatility. Prada has said that, on a pro-forma basis, Versace will contribute around 13% of its revenue, compared with 22% from Miu Miu and 64% from the core Prada label, with Church’s footwear and other lines making up the balance.
For now, management insists the priority is integration and growth, not further M&A. Prada’s CEO recently told reporters that the group has no new acquisitions in the pipeline and will focus on Versace for at least the next three years.
Manufacturing muscle: Versace joins Prada’s Italian supply chain
One of the most strategic aspects of the deal is manufacturing. Prada is already moving to plug Versace into its Italian production network, which the group has spent years building up through new factories and an in-house training academy for artisans.
At Prada’s leather goods hub in Scandicci, near Florence, craftspeople currently stitch and assemble bags for the Prada and Miu Miu labels, with Versace products set to follow. “Making a bag for one brand or another, the know-how is the same,” Bertelli told reporters on a recent visit, emphasising that consolidating production is about consistency and scale, not homogenising design.
The group’s academy, now 25 years old, has trained around 570 artisans across the Tuscany, Marche, Veneto and Umbria regions, providing a pipeline of skilled workers in a sector that often complains of shortages. Last year, Prada hired 70% of the 120 trainees; this year, the cohort has risen to 152.
In 2025 alone, Prada has invested some €60 million in its supply chain — including a new leather goods factory near Siena, a knitwear facility near Perugia, expansions at its Church’s footwear plant in the UK and upgrades to another Tuscan site — on top of roughly €200 million invested between 2019 and 2024. Versace slotting into that system should, in theory, give the brand more reliable production and better margins over time.
What the Prada Versace acquisition means for luxury
Financially, the Prada Versace acquisition is part of a broader shift towards consolidation in high fashion, with Italian players seeking more scale to compete with French groups that dominate the sector. Analysts note that the deal adds another culturally powerful label to Prada’s line-up, while giving Versace a more focused owner than a sprawling, U.S.-listed holding company.
The near-term challenge will be balancing Versace’s loud, sex-driven image with a market that still leans towards quieter branding, without diluting what makes the Medusa logo resonate. Much will depend on how Dario Vitale’s collections land with customers and whether Bertelli can position Versace as a high-energy counterpoint to Prada’s intellectual minimalism and Miu Miu’s playful subversion, rather than a relic of a pre-“quiet luxury” era.
Capri chairman John D. Idol has described Prada as the “ideal partner” to guide Versace into a new phase of growth. For Italian fashion, the deal is also symbolic: two of its most famous names, long rivals on Milan’s Via Montenapoleone, are now part of the same group, with the promise that production — and much of the value created — will remain anchored in Italy.
Whether that promise translates into a lasting turnaround for Versace will be one of luxury’s most closely watched stories in the years ahead.
Sources:
AP News – “Prada finalizes purchase of fashion rival Versace for $1.4 billion, launching new era”
Reuters – “Prada completes Versace takeover after long courtship”
