Prada Acquires Versace in $1.4 Billion Deal/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Prada has officially acquired fashion rival Versace in a $1.375 billion deal, marking a major shift in the luxury fashion world. The acquisition is expected to revive Versace’s performance and integrate it into Prada’s strong Italian manufacturing system. Versace’s future will be guided by Prada heir Lorenzo Bertelli as the brand undergoes a creative refresh.
Prada-Versace Merger: Quick Looks
- Prada finalizes $1.375 billion acquisition of rival Versace.
- The deal combines Prada, Miu Miu, and Versace under one fashion powerhouse.
- Donatella Versace marked the moment with tribute to Gianni Versace.
- Prada Group heir Lorenzo Bertelli to lead Versace’s next chapter.
- Versace currently undergoing creative relaunch under designer Dario Vitale.
- Capri Holdings will use funds from the sale to reduce debt.
- Versace to join Prada’s Italian manufacturing system in Tuscany and beyond.
- Versace accounted for 20% of Capri’s 2024 revenue.
- Prada continues expanding with €60M invested in production this year.
- New artisans trained in-house to support brand growth.
Prada Acquires Versace in $1.4 Billion Deal
Deep Look
In a landmark move that reshapes the landscape of global luxury fashion, the Prada Group has completed its $1.375 billion acquisition of Milan-based rival Versace. The all-cash deal, finalized after receiving regulatory approval, places the iconic Versace brand — known for its bold, sensual style — under the same banner as Prada’s minimalist sophistication and Miu Miu’s youthful flair.
Announced by both companies on Tuesday, the deal marks the end of Versace’s tenure under U.S.-based Capri Holdings and signals a new era for the storied Italian label. Capri, which also owns Michael Kors and Jimmy Choo, confirmed it would use the proceeds to reduce corporate debt.
Prada issued a brief but definitive statement confirming the acquisition’s closure. Meanwhile, Donatella Versace, sister of late founder Gianni Versace and the brand’s longtime creative force, celebrated the moment with a heartfelt Instagram post.
“Today is your day and the day Versace joins the Prada family,” she wrote, posting a nostalgic photo of Gianni alongside Miuccia Prada from 1979.
Leadership and Vision for Versace
At the helm of Versace’s new direction will be Lorenzo Bertelli, Prada Group’s marketing director and sustainability chief — and the son of Miuccia Prada and chairman Patrizio Bertelli. Lorenzo is poised to take on the role of executive chairman at Versace, steering the brand’s transition into Prada Group’s culture and structure.
Despite the takeover, Bertelli has indicated there are no immediate plans for executive changes within Versace. He emphasized the brand’s potential, noting that while it is one of the top 10 most recognized luxury labels in the world, it has underperformed in recent years, particularly under Capri’s ownership. The brand struggled to adapt in an era where understated “quiet luxury” trends dominated, leaving its bold aesthetic somewhat out of step with the times.
Prada believes Versace holds “significant untapped growth potential,” particularly with its new creative leadership. Designer Dario Vitale, formerly with Miu Miu, debuted his first Versace collection at Milan Fashion Week in September. His appointment was reportedly independent of the acquisition but aligns well with Prada’s broader creative direction.
Strategic Manufacturing Integration
A major component of the acquisition is the integration of Versace into Prada Group’s renowned Italian manufacturing system. Known for its strong commitment to in-house production and artisanal training, Prada has been investing heavily in its supply chain infrastructure across regions such as Tuscany, Umbria, Veneto, and Marche.
Last week, Lorenzo Bertelli toured the Scandicci leather goods facility, which currently produces bags for both Prada and Miu Miu. Soon, it will begin manufacturing Versace products as well.
“Making a bag for one brand or another, the know-how is the same,” Bertelli noted, emphasizing the flexibility and depth of the group’s manufacturing capabilities. At the same facility, new artisans are trained through Prada’s internal academy, which has produced over 570 skilled workers since its founding 25 years ago.
In 2025 alone, the academy trained 152 artisans — a 28% increase from the previous year — with 70% receiving full-time job offers. Prada has committed over €60 million this year to its production capacity, adding a new leather factory near Siena and a knitwear facility near Perugia, along with increasing footwear output at its Church’s factory in the UK.
This latest round of investment builds on the €200 million the company poured into supply chain improvements between 2019 and 2024.
Financial Impact and Market Strategy
The acquisition not only signals Prada’s ambition to expand its brand portfolio but also strengthens its financial position in the global luxury sector. Under Capri Holdings, Versace accounted for 20% of the group’s €5.2 billion in 2024 revenue.
Going forward, Versace is expected to contribute 13% to Prada Group’s pro-forma revenues, according to data released at the time of the deal’s announcement. Prada currently generates 64% of group sales, with Miu Miu contributing 22%.
Capri Holdings Chairman John D. Idol described Prada as the “ideal partner” to guide Versace into its next chapter. The shift is seen as a strategic pivot for both companies: for Prada, a powerful portfolio expansion; for Capri, an opportunity to refocus and recover from performance lags in a shifting market.
As Versace prepares to settle into its new home within Prada’s ecosystem, the fashion world watches closely. With bold legacy branding, renewed creative leadership, and the support of one of Italy’s most sophisticated manufacturing networks, Versace is poised for a powerful resurgence under Prada’s direction.
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