The Italian fashion house Versace is set to join Prada—a fellow heavyweight in the Italian and global fashion arena. The Prada Group announced the deal in Milan after months of negotiations, with a purchase price pegged at 1.25 billion euros. The Versace name, rooted in the brand’s founder Gianni Versace, who was murdered in 1997, is to be preserved.
In recent years, the luxury label operated under Capri Holdings, the U.S. company that also owns Michael Kors and the shoe maker Jimmy Choo. Prada, by contrast, is a broader empire that includes its own label Prada, the sister line Miu Miu, and Church’s, a top-tier footwear brand.
Italian group facing international luxury competition
The motive behind the takeover is to better keep pace with global rivals such as LVMH of France. The deal had been the subject of speculation for months. According to the daily newspaper Corriere della Sera, there were still a few hurdles to clear, and just before closing, concerns about tariffs imposed by U.S. President Donald Trump on other countries—Italy included—were noted.
Regulatory approval is still required, though it’s broadly expected. A closing is anticipated in the second half of the year. Corriere della Sera called the arrangement a pairing of the two “queens of Italian fashion.” Armani, serving as the king of Italian fashion at over 90 years old and still designing, was referenced as maintaining his reign.
The price tag for the Milan-born company, founded in 1978, ended up lower than the previously floated 1.5 billion euros. Prada is considerably older than Versace: the brand, which traces its origins to two brothers, has been around since 1913. Its rise to prominence was accelerated by the film The Devil Wears Prada, adapted from the best-selling book of the same name.
Group chief promises: Versace’s legacy will endure
Group CEO Patrizio Belli assured that Prada will safeguard Gianni Versace’s legacy. “We want to celebrate and reinterpret his bold and timeless aesthetics,” he stated. Since Versace’s assassination, his sister Donatella had led the house’s creative direction until recently. Just last month, the 69-year-old stepped down. As of April 1, she has transitioned to the role of Chief Brand Ambassador.
The new creative chief is now Dario Vitale, who previously worked for Miu Miu. Versace has more than 200 own stores worldwide, and the brand’s products are available in more than 600 additional shops. The company also produces shoes, handbags, eyewear, watches, and fragrances.
