Italian luxury fashion house Prada has finally acquired its long-standing rival Versace in a $1.375 billion cash deal, a development that was in the works for the past eight months. The takeover materialised on December 2, Versace founder Gianni Versace 79th birth anniversary.
The Prada-Versace deal is viewed as a strategy to revive Versace following its underwhelming performance under US-based Capri Holdings since the pandemic.
In a one-line statement, Prada confirmed the acquisition's completion following all regulatory approvals. On the other hand, Capri Holdings, which also owns luxury fashion brands such as Michael Kors and Jimmy Choo, said it will apply proceeds toward debt reduction.
Donatella Versace welcomed the deal in an Instagram post, remembering 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 1996 photo of Gianni Versace with Miuccia Prada.
Prada heir Lorenzo Bertelli will oversee the next chapter of Versace as executive chairman. He will also serve as group marketing director and sustainability chief.
The Prada Group also owns high fashion women's clothing and accessory brand Miu Miu, footwear brands Church's and Car Shoe, as well as the sailing team Luna Rossa.
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