Prada Group says it has purchased fashion rival Versace in a deal worth nearly $1.4 billion

"MILAN -- The Prada Group announced Tuesday that it has officially purchased Milan fashion rival Versace in a 1.25 billion euro (nearly $1.4 billion) deal that puts the fashion house known for its sexy silhouettes under the same roof as Prada's "ugly chic" aesthetic and Miu Miu's youth-driven appeal. The highly anticipated deal is expected to relaunch Versace's fortunes, after middling post-pandemic performance as part of the U.S. luxury group Capri Holdings."

"Prada heir Lorenzo Bertelli will steer Versace's next phase as executive chairman, in addition to his roles as group marketing director and sustainability chief. The son of co-creative director Miuccia Prada and longtime Prada Group chairman Patrizio Bertelli has said he doesn't expect to make any swift executive changes at Versace. But Bertelli has said that the company, which places among the top 10 most recognized brands in the world, has long been underperforming in the market."

"Versace has been in the midst of a creative relaunch under a new designer, Dario Vitale, who previewed his first collection during Milan Fashion Week in September. He had previously been head of design at Miu Miu, but his move to Versace was unrelated to the Prada deal, executives have said. Capri Holdings, which owns Michael Kors and Jimmy Choo, paid $2 billion for Versace in 2018, but had been struggling to position Versace's bold profile in the recent era of "quiet luxury.""

Prada Group completed the purchase of Versace for 1.25 billion euros after receiving all regulatory clearances. The deal brings Versace's sexy silhouettes under the same corporate umbrella as Prada's "ugly chic" aesthetic and Miu Miu's youth-driven appeal. Prada emphasized Versace's "significant untapped growth potential." Lorenzo Bertelli will serve as Versace's executive chairman while maintaining roles as group marketing director and sustainability chief, and he does not expect immediate executive changes. Versace has been undergoing a creative relaunch under designer Dario Vitale. Capri Holdings had acquired Versace for $2 billion in 2018 and saw Versace contribute 20% of its 2024 revenue.

Read at ABC7 Los Angeles