In a landmark transaction in the luxury fashion world, Prada Group has officially acquired Versace — one of Milan’s most iconic fashion houses — for 1.25 billion euros (nearly US $1.4 billion), following receipt of all required regulatory clearances.
The takeover unites Versace’s bold, glamorous aesthetic with Prada Group’s existing stable — which already includes the parent label Prada and its youth-oriented offshoot Miu Miu. Company officials described the acquisition as a strategic move to deepen Prada’s hold on the global luxury market, and to inject new momentum into Versace, which had underperformed in recent years under its previous owner.
Under the terms of the deal, Versace will retain its creative identity and operate as a distinct brand within the larger conglomerate. The group plans to integrate Versace into its Italian manufacturing and supply-chain infrastructure — leveraging existing crafts- and leather-goods factories that already produce for Prada and Miu Miu. Earlier expansions of manufacturing capacity and a dedicated artisan training academy are expected to support the upcoming production ramp-up.
Leadership changes have been announced as part of the merger. Lorenzo Bertelli — son of Prada founders and a key figure in the group’s marketing and sustainability operations — will assume the role of executive chairman at Versace once the integration is complete. Despite the change in ownership, he has signalled restraint, stating there will be no abrupt overhaul at Versace; instead, the focus will remain on long-term growth and reviving the brand’s performance.
The acquisition marks the culmination of a period of strategic repositioning for Prada. The group has committed to funding the purchase with around 1.5 billion euros in new debt, signalling confidence in Versace’s potential to deliver returns and reinforce the group’s global luxury credentials. The move also underscores a broader consolidation trend in the luxury fashion industry as Italian labels seek stronger footing against dominant French conglomerates.
For Versace, the new parentage under Prada may signal a revival. Known for its daring, glamorous design ethos, the brand recently underwent a creative refresh under its new head designer. With the financial muscle and manufacturing backbone of Prada behind it, Versace is now positioned to re-assert its presence in global luxury — blending its signature glamour with the disciplined craftsmanship heritage of its new group.
