Prada Group Secures Versace in $1.4 Billion Deal, Set to Boost Fashion House's Fortunes
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In a strategic move, the Prada Group has finalized its acquisition of fashion powerhouse Versace in a deal worth nearly $1.4 billion. The deal is expected to revitalize Versace's performance, which had been struggling post-pandemic as part of Capri Holdings. Prada heir Lorenzo Bertelli will lead Versace's future as executive chairman, with plans to tap into the brand's 'significant untapped growth potential.' Versace, known for its bold and sexy silhouettes, has been undergoing a creative relaunch under new designer Dario Vitale. The brand's acquisition by Prada comes after Capri Holdings struggled to position Versace's profile in the 'quiet luxury' era. Versace accounted for 20% of Capri Holdings' 2024 revenue of 5.2 billion euros. As part of the Prada Group, Versace will join Miu Miu and Prada in the group's Italian manufacturing system. The Prada Group has invested heavily in its supply chain, with 60 million euros allocated this year alone. This effort aims to create a seamless production process, with artisans trained at Prada's in-house academy contributing to the group's growth. The acquisition is expected to boost the Prada Group's revenue, with Versace representing 13% of the group's pro-forma revenues. The Prada Group's revenue rose 17% to 5.4 billion euros last year, with Miu Miu contributing 22% and Prada accounting for 64%.
