Prada officially buys rival Italian luxury brand Versace in $1.4B cash deal

MILAN — The Prada Group closed the purchase of Milan fashion rival Versace in a $1.375 billion cash 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 US luxury group Capri Holdings.Prada said in a one-line statement that the acquisition had been completed after receiving all regulatory clearances.Capri Holdings, which owns Michael Kors and Jimmy Choo, said the money would be used to pay down debt.Donatella Versace welcomed the deal in an Instagram post, which also marked the birthday of the brand’s late founder, her brother, Gianni Versace.“Today is your day and the day Versace joins the Prada family.

I am thinking of the smile you would have had on your face,’’ she wrote in a post that also featured a 1979 photo of Gianni Versace with Miuccia Prada.Prada heir Lorenzo Bertelli is set to 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, although he also noted that the company, which is among the top 10 most recognized brands in the world, has long been underperforming in the market.Prada has underlined that the 47-year-old Versace brand offered “significant untapped growth potential.’Versace is undergoing a creative relaunch under a new designer, Dario Vitale, who previewed his first collection during Milan Fashion Week in September.He was previously head of design at Miu Miu, but his move to Versace was unrelated to the Prada deal, executives have said.Capri Holdings paid $2 billion for Versace in 2018, but had been struggling to position the brands’ bold prof...