Prada Purchases Fashion Rival Versace for $1.4-B

The Prada Group has announced that it has officially purchased Milan fashion rival Versace in a 1.25-billion-euro (nearly $1.4 billion) deal that puts the fashion house known for its sexy silhouettes under the same roof as Prada’s “ugly chic” aesthetic and Miu Miu’s youth-driven appeal, Colleen Barry reported for the Associated Press (AP).

Prada said in a one-line statement that the acquisition was completed after receiving all regulatory clearances.

The highly anticipated deal is expected to relaunch Versace’s fortunes after middling post-pandemic performance as part of the U.S. luxury group Capri Holdings.

Prada said in a one-line statement that the acquisition was completed after receiving all regulatory clearances.

Prada heir Lorenzo Bertelli will steer Versace’s next phase as executive chairman, in addition to his roles as group marketing director and sustainability chief.

The son of co-creative director Miuccia Prada and longtime Prada Group chairman Patrizio Bertelli has said he doesn’t expect to make any swift leadership changes at Versace.

But Bertelli has also said that the company, which ranks among the top 10 most recognized brands globally, has long been underperforming in the market.

Prada emphasized that the 47-year-old Versace brand offers “significant untapped growth potential.” Versace has been in the midst of a creative relaunch under its new designer, Dario Vitale, who previewed his first collection during Milan Fashion Week in September.

Vitale, previously head of design at Miu Miu, moved to Versace independently of the Prada deal, executives have said.

Capri Holdings — which also owns Michael Kors and Jimmy Choo — paid $2 billion for Versace in 2018 but has struggled to position its bold aesthetic in the recent era of “quiet luxury.”