Prada completes acquisition of flashy rival Versace

Italian fashion group Prada announced on Tuesday it had completed its acquisition of smaller rival Versace, announced earlier this year for 1.25 billion euros (now $1.45 billion).

Prada Group said in a statement that the deal with Capri Holdings, the US group which owned Versace, had "received all required regulatory clearances".

Lorenzo Bertelli — the son of designer Miuccia Prada and chief marketing officer — will become executive chairman of Versace following the takeover.

Versace's lustre had been waning in recent years, unlike that of the Prada Group, which is in robust health, fuelled by strong sales of its younger Miu Miu Line.

Prada Chief Executive Andrea Guerra told journalists during a factory visit that Versace was "extraordinarily different from our other brands in the portfolio".

The flashy label "invented fashion as we know it today", bringing it closer to popular culture, and as such "strikes a different aesthetic and appeals to a different consumer", he added.

Founded in 1978 by Gianni Versace in Milan, Versace is known for its bold, glamorous aesthetic and global brand recognition.

The label will now join Prada’s two main houses — Prada and the fast-growing Miu Miu — marking a significant strategic expansion for the group.

Bertelli, who spearheaded the acquisition, said Versace met two crucial criteria: it posed manageable financial risk and carried exceptional brand value.

“It was worth it,” he said, citing Versace’s standing among the world’s most recognisable luxury names.

The transition follows major leadership changes at the iconic fashion house. In March, just weeks before the deal was announced, Donatella Versace stepped down as creative chief after nearly 30 years in the role.

She was succeeded by Dario Vitale, formerly design director at Miu Miu. Versace’s legacy spans decades of cultural influence.