BREAKING NEWS: The Prada Group has officially acquired its fashion rival, Versace, in a monumental deal valued at $2.2 billion (€1.25 billion), announced just hours ago. This strategic move places the iconic brand known for its daring designs alongside Prada’s innovative “ugly chic” and Miu Miu’s youthful flair.
The acquisition is expected to rejuvenate Versace’s fortunes following a lackluster performance since the pandemic, while under the ownership of Capri Holdings. Prada confirmed that all necessary regulatory approvals have been secured, paving the way for this significant merger.
UPDATE: Lorenzo Bertelli, heir to the Prada legacy, will take the helm as executive chairman of Versace while continuing his roles as group marketing director and sustainability chief. Despite the change in ownership, Bertelli indicated that swift executive alterations at Versace are unlikely. He emphasized the brand’s long-term growth potential, stating that Versace has historically struggled to maintain its market position.
The news comes at a critical time for Versace, which is currently undergoing a creative renaissance under new designer Dario Vitale. Vitale’s debut collection was showcased during Milan Fashion Week in September, signaling a fresh direction for the brand.
Previously, Capri Holdings, which also owns Michael Kors and Jimmy Choo, purchased Versace for $2 billion in 2018 but faced hurdles in aligning the brand with the current trend of “quiet luxury.” Versace accounted for 20 percent of Capri Holdings’ projected €5.2 billion revenue for 2024.
In contrast, Prada’s acquisition is poised to enhance its financial landscape, with Versace projected to represent 13 percent of Prada Group’s pro-forma revenues. Miu Miu is expected to contribute 22 percent, while the Prada brand itself is anticipated to dominate with 64 percent.
The Prada Group, which includes the esteemed Church’s footwear line, recently reported a 17 percent revenue increase to €5.4 billion in 2024, highlighting its robust financial health. Preparations are already underway to integrate Versace into Prada’s Italian manufacturing network, a point of pride for the group.
Bertelli remarked, “Making a bag for one brand or another, the know-how is the same,” during a recent tour of the Scandicci leather goods factory, which already produces for Prada and Miu Miu and will soon include Versace in its operations.
As the fashion world watches closely, this acquisition is set to reshape the luxury landscape, signaling a new era for both Prada and Versace. Share this developing story as it unfolds!
