Italian luxury powerhouse Prada strengthens its market position with strategic acquisition of iconic designer brand

In a significant move that reshapes the luxury fashion landscape, Prada Group has announced the acquisition of Versacefor $1.36 billion (£1.06 billion). The deal, confirmed Thursday, unites two of Italy’s most prestigious designer brands under one corporate umbrella.

Strategic Expansion in Competitive Luxury Market

The acquisition represents a calculated move by Prada to strengthen its position against French luxury conglomerates like LVMH and Kering. By adding Versace to its portfolio—which already includes Miu Miu and Church’s footwear—Prada creates a multi-billion dollar luxury group with enhanced global market presence.

“We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic,” said Patrizio Bertelli, Prada’s chairman, in the official announcement. “Versace has huge potential. The journey will be long and will require disciplined execution and patience,” added Andrea Guerra, Prada Group’s chief executive.

Deal Values Versace at Discount

Industry analysts note that the $1.36 billion price tag—which includes Versace’s outstanding debt—represents a significant discount from the $2.15 billion that Capri Holdings paid when it acquired Versace in 2018. This reduced valuation reflects Versace’s recent financial challenges amid the global slowdown in luxury spending.

The acquisition concludes negotiations that began in February between Prada and Capri Holdings, which also owns Jimmy Choo and Michael Kors.

Leadership Transition Already Underway

The deal comes shortly after a major leadership change at Versace. In March, Donatella Versace stepped down as creative director after nearly 30 years, assuming a new role as chief brand ambassador. Dario Vitale, formerly of Miu Miu, has taken over as chief creative officer.

Donatella had led the brand’s creative direction since 1997, following the tragic murder of her brother Gianni, who founded the iconic fashion house.

Industry Consolidation Continues

This acquisition continues the trend of consolidation in the luxury fashion industry, as larger groups seek to diversify their brand portfolios and achieve economies of scale in manufacturing, distribution, and marketing.

Market experts suggest the combined strength of these Italian fashion houses could create a more formidable competitor to the French-dominated luxury market, potentially shifting power dynamics in the global fashion industry.

The transaction is expected to close by the end of the third quarter, pending regulatory approvals