Prada Group has officially completed its acquisition of Italian luxury rival Versace in a deal valued at €1.25 billion (approximately $1.4 billion), marking one of the most significant restructurings in the global fashion sector in recent years.
The group announced that all regulatory approvals have been secured, bringing the iconic Versace label known for its high-octane glamour and bold aesthetics under the same ownership as Prada’s minimalist luxury and Miu Miu’s youth-focused brand identity.
Lorenzo Bertelli, the group’s marketing director, sustainability chief, and incoming executive chairman, will oversee Versace’s strategic transformation.
He said no immediate leadership changes are planned, but reaffirmed that the brand has long performed below its market potential despite being one of the world’s most recognisable luxury houses.
Prada described Versace’s 47-year heritage as holding “significant untapped growth potential,” especially after years of mixed performance under US-based Capri Holdings.
Versace is already undergoing a renewed creative direction under artistic director Dario Vitale, who unveiled his first collection at Milan Fashion Week in September.
Vitale, formerly head of design at Miu Miu, joined before acquisition talks began, and executives explained that his appointment was not linked to the takeover.
Capri Holdings acquired Versace for $2 billion in 2018 but struggled to balance the brand’s flamboyant identity with global trends favouring understated “quiet luxury.” Versace generated about 20% of Capri’s 2024 revenue of €5.2 billion.
Under Prada Group’s new structure, Versace will account for 13% of revenue, with Miu Miu contributing 22% and Prada 64%. The group posted €5.4 billion in revenue last year, up 17% from the previous year.
Prada has already begun folding Versace into its Italian manufacturing network, a cornerstone of its operations. During a recent visit to the group’s Scandicci production facility, Bertelli highlighted shared craftsmanship standards across brands, saying, “Making a bag for one brand or another, the know-how is the same.”
The company has invested €60 million in its supply chain this year, including a new leather-goods plant near Siena, a knitwear factory near Perugia, and expanded output in both its UK-based Church’s operations and a major Tuscan facility. This follows over €200 million invested between 2019 and 2024.
Prada’s internal academy training artisans across Tuscany, Veneto, Umbria, and Marche has prepared more than 570 craftsmen over the past 25 years. This year alone, 152 artisans were trained, a 28% rise from last year.
With Versace now fully integrated, Prada Group aims to strengthen Italy’s luxury production tradition, streamline its supply chain, and drive a renewed global push for the revitalised brand.
