Prada Group Promises New Growth After Purchasing Versace for $1.4 Billion
The Prada Group completes its $1.4 billion purchase of Versace, with Lorenzo Bertelli spearheading the brand’s strategic rebirth.
One of the most significant upheavals in the global fashion business this decade has been sealed with Prada Group’s confirmation of the completion of its high-profile acquisition of Milan luxury rival Versace in a €1.25 billion (almost $1.4 billion) deal.
The business declared on Tuesday that the deal had been approved by all regulatory bodies, uniting the house known for its daring glamour with Miu Miu’s youthful luxury and Prada’s simple, “ugly chic” style.
As the group’s marketing director, sustainability chief, and upcoming executive chairman, Prada heir Lorenzo Bertelli will lead Versace’s next phase. Even though the company is one of the top ten most recognizable brands in the world, it has long underperformed its market potential, he said, adding that he does not have any immediate plans to change its executives.
After years of uneven performance under US-based Capri Holdings, Prada emphasized that Versace’s 47-year legacy offers “significant untapped growth potential” and anticipates that the acquisition would relaunch the brand.
With the unveiling of his first collection at Milan Fashion Week in September, new artistic director Dario Vitale has already begun to creatively reshape Versace. According to officials, Vitale, who was the head of design at Miu Miu before joining Versace, had nothing to do with the Prada takeover.
Capri Holdings, which also owns Jimmy Choo and Michael Kors, paid $2 billion for Versace in 2018 but found it difficult to reconcile the brand’s flashy image with the world’s trend toward “quiet luxury.” 20% of Capri’s €5.2 billion in 2024 revenue came from Versace.
Prada will contribute 64%, Versace 13%, and Miu Miu 22% under the pro-forma revenue structure of the Prada Group. Last year, the company, which owns Church’s footwear, recorded €5.4 billion in revenue, a 17% rise.
One of the group’s main sources of pride is Versace, which Prada has already started incorporating into its Italian production system. “Making a bag for one brand or another, the know-how is the same,” Bertelli said on the uniformity of craftsmanship standards across brands during a recent tour of Prada’s Scandicci facility.
This year alone, the company has spent €60 million in its supply chain, which includes a new facility for leather goods near Siena, a knitwear factory near Perugia, expanded output at Church’s in the UK, and a significant plant in Tuscany. These come after investments totaling €200 million from 2019 to 2024.
With locations in Tuscany, Marche, Veneto, and Umbria, Prada’s in-house academy has trained some 570 artists over the course of 25 years. Out of the 120 trainees, 70% were employed internally last year. The academy’s training of 152 artisans this year represented a 28% rise.
With Versace in-house, the firm hopes to boost Italy’s luxury manufacturing heritage, increase output, and optimize supply chains while promoting a reinvigorated worldwide drive.
