The Prada Group has confirmed the completion of its €1.25 billion (nearly $1.4 billion) acquisition of long-time Milanese rival Versace, marking one of the most significant European luxury shake-ups in recent years. The deal, finalised after all regulatory approvals were secured, places Versace’s high-octane glamour alongside Prada’s signature “ugly chic” design language and Miu Miu’s growing global pull.
The takeover has been widely viewed as an effort to revive Versace following its uneven post-pandemic performance under Capri Holdings. The U.S. group, which bought Versace for $2 billion in 2018, had struggled to align the brand’s bold identity with the industry’s recent shift toward “quiet luxury.”
Prada said in a brief statement that the acquisition had now been completed. Lorenzo Bertelli, heir to the Prada family leadership, will guide Versace’s next phase as executive chairman while continuing in his roles as group marketing director and head of sustainability. He has previously noted that he does not intend to bring rapid executive change, but acknowledged that the storied Italian label, ranked among the world’s top ten most recognised fashion houses, has not been performing to its full market potential.
The brand, which is 47 years old, is currently undergoing a creative transition led by designer Dario Vitale, who unveiled his first collection during Milan Fashion Week in September. Vitale, formerly head of design at Miu Miu, joined Versace independently of the Prada deal.
An analyst briefing on the transaction reported that Versace accounted for 20% of Capri Holdings’ 2024 revenue of 5.2 billion euros. Under its new ownership, Versace is expected to represent 13% of the Prada Group’s combined revenues, with Miu Miu at 22% and Prada remaining the dominant contributor at 64%. Last year, Prada Group reported revenues of 5.4 billion euros, a 17% rise from the previous year.
Absorbing Versace into Prada’s extensive Italian manufacturing network is a central part of the plan. Speaking at the company’s Scandicci leather goods facility last week, Bertelli said: “Making a bag for one brand or another, the know-how is the same.” The factory, which currently produces leather goods for Prada and Miu Miu, will soon add Versace lines.
Prada has invested 60 million euros this year in production sites across Italy, including new facilities near Siena and Perugia, as well as expansions to its Church’s footwear operations in the UK and factories in Tuscany. Between 2019 and 2024, the group committed an additional 200 million euros to strengthening its supply chain.
The company also continues to grow its internal training academy, which has produced around 570 artisans over 25 years across Tuscany, Marche, Veneto and Umbria. Last year, 70% of the 120 graduating artisans were hired by the group. The number of trainees rose by 28% to 152 this year.
