Prada has finalized a billion-dollar agreement to acquire its smaller Italian rival, Versace, in a move that will bring together two of the most iconic names in luxury fashion.
Announced on Thursday, the Prada Group confirmed the deal is valued at approximately $1.36 billion (£1.06 billion).
“Our goal is to honor and reimagine Versace’s bold and timeless aesthetic,” said Prada chairman Patrizio Bertelli.
Prada, which already owns brands such as Miu Miu and luxury shoemaker Church’s, will significantly expand its fashion portfolio through the acquisition, creating a multi-billion dollar luxury powerhouse to better compete with French giants like LVMH and Kering.
Talks between Prada and Capri Holdings, Versace’s current parent company, began in February.
Interestingly, Prada’s purchase price is notably lower than the $2.15 billion Capri Holdings paid for Versace in 2018. The deal includes Versace’s existing debt and comes at a time when the brand has been struggling financially due to a global dip in luxury fashion demand.
Capri Holdings also owns other major labels, including Jimmy Choo and Michael Kors.
Prada CEO Andrea Guerra expressed optimism about the acquisition, stating, “Versace has enormous potential. This journey will require patience and disciplined execution.”
Donatella Versace, who had been at the creative helm since 1997 following her brother Gianni’s death, stepped down from the role in March after nearly three decades. She now serves as chief brand ambassador. Dario Vitale, formerly with Miu Miu, has been appointed as Versace’s new chief creative officer.
