In a significant move within the fashion industry, the Prada Group has officially announced its acquisition of Milan-based fashion rival Versace. The deal, valued at 1.25 billion euros (approximately $1.4 billion), brings Versace, known for its bold and sultry designs, under the same umbrella as Prada’s signature “ugly chic” and Miu Miu’s youthful flair.
This eagerly awaited acquisition is anticipated to rejuvenate Versace’s market performance, following its lackluster results after the pandemic while part of the U.S.-based luxury conglomerate, Capri Holdings.
Prada confirmed the completion of the acquisition through a concise statement, noting that all necessary regulatory approvals had been secured.
Versace’s future
Lorenzo Bertelli, the Prada heir, is set to guide Versace’s future as the executive chairman, expanding his current responsibilities as the group’s marketing director and head of sustainability.
Bertelli, the son of Miuccia Prada and Patrizio Bertelli, the longstanding Prada Group chairman, has indicated that he doesn’t plan to implement immediate executive changes at Versace. However, he has observed that despite Versace’s status as one of the world’s top 10 recognized brands, it has not reached its full potential in the market.
Prada has emphasized that the 47-year-old Versace brand holds “significant untapped growth potential,” suggesting promising prospects under its new leadership.
Versace has been in the midst of a creative relaunch under a new designer, Dario Vitale, who previewed his first collection during Milan Fashion Week in September. He had previously been head of design at Miu Miu, but his move to Versace was unrelated to the Prada deal, executives have said.
Capri Holdings, which owns Michael Kors and Jimmy Choo, paid $2 billion for Versace in 2018, but had been struggling to position Versace’s bold profile in the recent era of “quiet luxury.
Versace represented 20% of Capri Holdings 2024 revenue of 5.2 billion euros. An analyst presentation for the Prada deal said that Versace would represent 13% of the Prada Group’s pro-forma revenues, with Miu Miu coming in at 22% and Prada at 64%. The Prada Group, which also includes Church’s footwear, reported a 17% boost in revenues to 5.4 billion euros last year.
Prada’s in-house manufacturing
The Prada Group has already begun preparations to incorporate crosstown rival Versace into its Italian manufacturing system, a point of pride for the group.
“Making a bag for one brand or another, the know-how is the same, Bertelli told reporters last week at the group’s Scandicci leather goods factory, which already makes bags for the Prada and Miu Miu brands and will soon add Versace.
The Prada Group’s has invested 60 million euros in its supply chain this year, including a new leather goods factory near Siena, a new knitwear factory near Perugia as well as increasing production at its factory Church’s footwear factory in Britain and expanding another Tuscan factory. That’s on top of 200 million euros in investments from 2019-24.
Prada’s efforts include an academy that has trained some 570 new artisans over the last 25 years in an in-house training academy operating in the Tuscany, Marche, Veneto and Umbria regions.
Last year, Prada hired 70% of the 120 artisans who trained in the academy. The number of trainees rose by 28% to 152 this year.
.
