Prada Group announced on Tuesday the completion of its acquisition of Milan-based fashion competitor Versace for €1.25 billion (approximately $1.4 billion). Following the deal, Versace—known for its bold, sensual designs—will join Prada's portfolio alongside the group's "ugly chic" namesake brand and youth-oriented Miu Miu.
The long-anticipated transaction is expected to revitalize Versace, which has struggled with stagnant performance under Capri Holdings, its former U.S.-based luxury parent company, in the post-pandemic era. Prada confirmed in a brief statement that all regulatory approvals were secured for the finalized acquisition.
**Versace’s Future Direction** Lorenzo Bertelli, Prada Group heir, will assume the role of Versace’s executive chairman to steer the brand’s next phase. Currently serving as Prada’s marketing director and head of sustainability, Bertelli—son of co-creative director Miuccia Prada and former chairman Patrizio Bertelli—stated no immediate plans for management reshuffles. However, he noted that despite Versace’s status as a top-ten global brand, its market performance has long fallen short of expectations.
Prada emphasized Versace’s "significant untapped growth potential" as the 47-year-old label undergoes a creative reboot. New designer Dario Vitale, formerly Miu Miu’s design lead, previewed his debut collection at September’s Milan Fashion Week. Executives clarified Vitale’s hiring was unrelated to the acquisition.
Capri Holdings, which acquired Versace for $2 billion in 2018 alongside brands like Michael Kors and Jimmy Choo, struggled to align Versace’s flamboyant identity with the recent "quiet luxury" trend. In 2024, Versace contributed 20% to Capri’s €5.2 billion revenue. Prada disclosed that, on a pro forma basis, Versace would account for 13% of group revenue, with Miu Miu at 22% and Prada’s main brand at 64%. The group, which also owns Church’s footwear, reported a 17% revenue increase to €5.4 billion last year.
**Prada’s Integrated Production Strategy** Prada is integrating Versace into its Italian manufacturing network—a core strength. "The craftsmanship behind handbag production remains consistent across brands," Bertelli remarked during a visit to the group’s Scandicci leather goods facility, which currently produces for Prada and Miu Miu and will soon add Versace lines.
This year, Prada invested €60 million in supply chain upgrades, including new leather goods and knitwear factories near Siena and Perugia, expanded Church’s production in the UK, and a Tuscany facility expansion. Between 2019 and 2024, the group allocated €200 million to supply chain development.
Additionally, Prada’s in-house training academy has cultivated roughly 570 artisans over 25 years across Tuscany, Marche, Veneto, and Umbria. Last year, 70% of its 120 graduates joined Prada Group, with trainee numbers rising 28% to 152 this year.
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