In a landmark move for the luxury fashion world, Prada has officially completed the full acquisition of rival Versace from Capri Holdings, according to a statement released on December 2nd. The transaction was valued at around €1.25 billion (approximately $1.4 billion), regarded as a bargain. The deal brings Versace back under Italian ownership after several years under U.S. control.
Prada’s decision to acquire Versace is a strategic one. In its statement, the Group described Versace as a “strongly complementary addition” to its existing stable – which includes Prada and Miu Miu – thanks to Versace’s global recognition, distinctive aesthetic and significant untapped growth potential.
Prada believes that by bringing Versace into its fold, it can leverage its own operational infrastructure – including manufacturing, retail execution and global supply chains – to reinvigorate Versace’s potential.
But with the acquisition complete, leadership changes are already underway: Lorenzo Bertelli — scion of the Prada family — will take on the role of Executive Chairman of Versace once integration is finalised.
Creative
On the creative side, the brand recently underwent a major shift. After more than two decades at the helm, Donatella Versace stepped down as creative chief in March 2025. In her place, Prada has appointed Dario Vitale – formerly of Miu Miu – signalling a possible renewal of Versace’s style under new creative direction.
In bringing together Prada’s famously minimalist aesthetic with Versace’s bold, flamboyant style, the acquisition seems calculated to cover a broader spectrum of luxury tastes. As one commentary put it, the deal effectively unites “minimalist Prada” with “maximalist Versace” – giving the merged group a stronger foothold across different segments of the fashion market.
Prada executives emphasised that Versace will retain its creative identity — but will now benefit from the Group’s robust manufacturing and retail infrastructure.
Industry analysts cautioned that revitalising Versace will take time. According to the integration plans, Prada expects some short-term pressure on margins due to inventory and restructuring costs.
Nonetheless, with Versace expected to contribute an estimated 13 percent of the revised Prada Group’s revenue – alongside Prada’s flagship business and Miu Miu – the Group is betting on a strong rebound by 2027.
Future
The acquisition marks a bold reaffirmation of Italian fashion houses’ competitive thrust in a world where French conglomerates like LVMH and Kering have long dominated. Prada’s move to consolidate Versace under its portfolio signals both a defence of homegrown legacy and an aggressive growth strategy. It remains to be seen whether the pairing of contrasting brand identities – Prada’s restrained elegance with Versace’s bold flamboyance – will pay off. But for now, the “Prada-Versace” era is officially underway.
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