Italian fashion group Prada Group announced the successful completion of the takeover of its smaller rival, the legendary fashion house Versace. The deal, valued at around 1.3 billion euros ($1.51 billion), became possible after previous plans to sell the brand to US investors were blocked by regulators, Reuters reported on December 2.
Prada bought the brand from US holding company Capri Holdings. Lorenzo Bertelli, the son of Prada owners Miuccia Prada and Patrizio Bertelli, who will become Versace’s chief executive, admitted that the company had been hunting for the asset for years.
According to him, negotiations were underway during the COVID-19 pandemic, long before Capri tried to sell the business to another US group, Tapestry.
He stressed that Versace meets two key criteria for Prada: the deal does not entail excessive financial risks, and the brand has enormous global recognition, which justifies the investment.
The addition of Versace to the group’s portfolio, which already includes the flagship Prada brand and the youth Miu Miu, marks a sharp change in the company’s strategy. Now, under one roof, Prada’s restrained intellectual aesthetic and Versace’s bold, glamorous style are combined.