Prada bags Versace in £1.3bn deal, sewing up a new era in Italian luxury

MILAN: In a move that stitched the fashion world into a frenzy, Prada just made its most glamorous purchase yet.

The Italian luxury major has officially acquired its long-coveted rival Versace for about €1.3 billion, sealing one of the most significant shake-ups in high fashion in recent years. The deal comes after Capri Holdings’ planned sale to Tapestry collapsed under antitrust scrutiny, clearing the runway for Prada to step back in.

Founded in 1978 by the legendary Gianni Versace, the house known for its maximalist glamour now joins Prada’s expanding stable, which includes the flagship Prada label and the rapidly rising Miu Miu. The acquisition marks a strategic pivot for the group as it moves decisively into multi-brand territory.

Donatella Versace, who helmed the brand creatively for nearly three decades before stepping down earlier this year, commemorated the moment with a poignant tribute on Instagram. The deal closed on what would have been Gianni Versace’s birthday.
“Today is your day… I’m thinking of the smile you would have had on your face,” she wrote. Gianni was tragically killed in Miami in 1997.

Lorenzo Bertelli, who will become executive chairman of Versace once the integration is complete, told Reuters the house had been on Prada’s radar for years.
“There had already been contacts during COVID… When the Capri–Tapestry deal fell through, we moved quickly,” he said. For Bertelli, the decision checked two crucial boxes: the financial risk was acceptable and Versace’s global brand power made the acquisition unquestionably worthwhile.

The creative baton at Versace has already changed hands, with Dario Vitale, previously design director at Miu Miu, stepping in after Donatella’s exit in March.