Fashion giant Prada has completed the acquisition of its smaller Italian rival Versace, a brand that the luxury group said it had long wanted to add to its portfolio.
The deal was signed in April, when Versace was owned by the US-based Capri Holdings. The acquisition price by Prada was around 1.3 billion euros, Reuters recalls.
Lorenzo Bertelli, son of Prada owners Miuccia Prada and Patrizio Bertelli, told the agency that he would take over as executive chairman of Versace once the integration was fully completed.
According to him, the fashion house had been interested in the deal for several years.
“There were already contacts during the pandemic, there were talks even before the sale of Capri to Tapestry. When the deal fell through due to antitrust issues, we came back and tried to speed things up,” he said, adding: “This was something that had been in the works for a long time.”
Founded in 1978 by Gianni Versace in Milan, the brand, known for its bold, glamorous aesthetic, will join the group’s two main brands – the eponymous Prada and the smaller but fast-growing Miu Miu – in a sharp strategic shift for the Italian fashion house.
Bertelli, who is pushing for the acquisition, said Versace meets two key conditions: it is not too risky financially and it is worthwhile, given that it is among the world’s leaders in terms of popularity.
In March, a few weeks before the Prada deal was announced, Donatella Versace stepped down as creative director of her brother’s fashion empire after almost three decades in the position.
Dario Vitale, former design director at Miu Miu, has taken over the role, Reuters reported.
Illustrative Photo by Fleur van Deijck: https://www.pexels.com/photo/prada-store-in-a-traditional-tenement-13379800/
