Italian luxury fashion house Prada has acquired iconic rival Versace in a $1.38 billion deal, uniting two of the world’s most storied designer brands under one roof.
The acquisition, finalized on Tuesday, comes well below the roughly $2 billion Capri Holdings paid for Versace in 2018. Prada’s portfolio already includes Miu Miu, and the move is seen as a strategic effort to compete with rivals such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Donatella Versace, who led the brand as creative chief for 27 years following her brother Gianni’s death in 1997, stepped down in March. She has been replaced by Dario Vitale, formerly design director at Prada’s Miu Miu.
Versace’s sale at roughly a $700 million loss follows slower sales and shifts toward minimalist designs under Capri Holdings, which also owns Michael Kors and Jimmy Choo. Capri said proceeds from the sale will be used primarily to reduce debt, strengthening its balance sheet.
Prada CEO Andrea Guerra said Versace has “huge potential,” noting that integrating the brand will be a long-term journey requiring discipline and patience.
The acquisition officially received all regulatory approvals, with Prada confirming the deal in a one-line statement on Tuesday.
