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 renowned sexy styles with Prada’s “ugly chic” aesthetic and Miu Miu’s youth-centric appeal. The transaction is expected to revitalize Versace’s performance following a period of moderate results under its previous owner, Capri Holdings.
Prada confirmed the completion of the acquisition after obtaining all necessary regulatory approvals. Capri Holdings, the former owner of Versace and the parent company of Michael Kors and Jimmy Choo, plans to utilize the proceeds to reduce its debt. Donatella Versace expressed her enthusiasm for the deal in an Instagram post honoring her late brother and brand founder, Gianni Versace.
Lorenzo Bertelli, a key figure in the Prada Group, will take on the role of executive chairman at Versace while maintaining his current positions within the organization. He emphasized continuity in leadership at Versace and acknowledged the brand’s potential for growth. Market experts view the merger positively, noting the complementary nature of Prada’s minimalist style and Versace’s maximalist approach, which could attract distinct customer bases.
Versace has embarked on a creative rejuvenation under designer Dario Vitale, receiving positive feedback for its recent collection showcased at Milan Fashion Week. Despite challenges faced by the brand in regaining relevance, industry insiders see promise in its strategic direction. Prada’s integration plans for Versace into its manufacturing operations signal a seamless transition for the iconic brand within the group’s structure.
