Prada buys Versace for $1.5B
What's the story
Italian luxury fashion house Prada has acquired its smaller rival, Versace, from Capri Holdings in a deal worth $1.5 billion. The acquisition was finalized after all regulatory approvals were secured. The move comes after Capri Holdings's sale to Tapestry was blocked by antitrust regulators. Founded in 1978 by Gianni Versace in Milan, the brand is known for its bold and glamorous aesthetic.
Strategic shift
Versace to join Prada's main labels
The acquisition will see Versace join Prada Group's two main labels: the flagship Prada and fast-growing Miu Miu. This marks a major strategic shift for the luxury group. Lorenzo Bertelli, son of Prada owners Miuccia Prada and Patrizio Bertelli, will become executive chairman of Versace once the integration is complete. He had been pushing for this deal for years, even before Capri's sale to Tapestry fell through over antitrust concerns.
Future plans
Prada's plans for Versace's future
Bertelli said he doesn't expect to make any swift executive changes at the brand. He also noted that despite being one of the top 10 most recognized brands in the world, it has long been underperforming in the market. The acquisition is seen as an opportunity to tap into significant untapped growth potential for the 47-year-old Versace brand.
Tribute
Donatella Versace pays tribute to brother Gianni
Donatella Versace, sister of the late Gianni, paid tribute to her brother on Instagram as she welcomed the deal. She said, "Today is your day and the day Versace joins the Prada family. I am thinking of the smile you would have had on your face. I miss you, always." Gianni was murdered in Miami in 1997.