Prada Completes $1.4 Billion Versace Acquisition on Gianni's Birthday
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| Credits: PRADA Group |
Under the agreement, Versace becomes a full subsidiary of Prada Group. The initial purchase agreement was announced in April 2025, when Prada agreed to acquire 100% of Versace based on an enterprise value of €1.25 billion.
Prada’s chairman, Patrizio Bertelli, stated that the group intends to preserve Versace’s distinct creative identity and heritage while leveraging Prada’s operational infrastructure, industrial capabilities and global retail execution to support Versace’s growth ambitions.
The deal comes against a backdrop of financial strain for Versace. Under Capri Holdings, Versace reportedly experienced revenue declines and mounting losses as global demand for luxury fashion softened.
At the same time, Prada Group has posted sustained growth. In its most recent annual report prior to the acquisition, the group reported a 17 per cent increase in revenues, driven by strong performance at its existing labels.
According to Prada’s internal memo, the acquisition will be funded with approximately €1.5 billion in new debt, comprising a €1.0 billion term loan and a €0.5 billion bridge facility.
Prada has started integrating Versace into its manufacturing operations in Italy, including at the Scandicci leather goods facility that produces items for Prada and Miu Miu, as Lorenzo Bertelli explained, "Making a bag for one brand or another, the know-how is the same."
He further noted:
"It’s clear that Versace will now have the opportunity to fully step into our world of industrial production. This means not only accessing a more structured and sophisticated manufacturing ecosystem, but also benefiting from processes, expertise and capabilities that can elevate the brand’s craftsmanship and operational strength."
The group invested 60 million euros in its supply chain this year, adding facilities near Siena and Perugia, expanding Church's production in Britain, and upgrading another Tuscan site, following 200 million euros spent from 2019 to 2024.
Prada's 25-year-old artisan academy trained 570 individuals across regions in Tuscany, Marche, Veneto, and Umbria, with 152 trainees this year, a 28% increase, and hired 70% of last year's 120 graduates.
Versace appointed Dario Vitale as its new designer earlier this year, unrelated to the acquisition, and he debuted a collection inspired by 1980s elements at Milan Fashion Week in September.
The acquisition closes a chapter that began in 2018 when Capri Holdings acquired Versace for about $2.1 billion.
Under Prada’s control, Versace is expected to operate alongside Prada’s existing portfolio, which includes brands such as Miu Miu, Church’s, Car Shoe and Marchesi 1824.
