Prada announced on Tuesday that it has finalized the acquisition of Italian luxury rival Versace, a brand the group said it had “long coveted.” The deal, valued at approximately €1.3 billion ($1.51 billion), marks a major strategic expansion for the Milan-based fashion house.

Deal Background:
Prada signed a definitive agreement in April to purchase Versace from U.S.-based Capri Holdings. This followed the collapse of Capri’s proposed sale to Tapestry due to antitrust challenges. Prada’s heir, Lorenzo Bertelli, revealed that talks had been ongoing since the COVID period and accelerated after the Tapestry deal fell through.

Leadership and Integration:

• Lorenzo Bertelli will become Executive Chairman of Versace once integration is complete.
• The late Gianni Versace founded the brand in Milan in 1978, known for its bold and glamorous aesthetic.
• Versace will join Prada’s portfolio alongside its core Prada label and the fast-growing Miu Miu.
• Creative leadership changed in March, with Donatella Versace stepping down after nearly three decades. Dario Vitale, former design director at Miu Miu, has taken over as creative chief.

Strategic Rationale:
Bertelli stated that Versace met two key criteria: it was not financially too risky and offered strong brand value, ranking among the world’s most recognized luxury names.

(Exchange rate: $1 = €0.8613)