The Italian luxury fashion landscape has been dramatically reshaped with the finalisation of a major corporate takeover. The Prada Group has completed its acquisition of Milanese rival Versace in a deal valued at €1.25 billion (approximately £1.10 billion). The move, confirmed on Tuesday, 2 December 2025, brings Versace's iconic, bold aesthetic under the same corporate umbrella as Prada's intellectual 'ugly chic' and Miu Miu's youthful designs.
A Strategic Move to Revitalise an Icon
In a brief statement following all regulatory approvals, Prada confirmed the deal's completion. The acquisition marks a significant new chapter for the 47-year-old Versace brand, which had been part of the US-based Capri Holdings since its $2 billion purchase in 2018. Under Capri, which also owns Michael Kors and Jimmy Choo, Versace was seen by some analysts as struggling to maintain its distinctive voice amidst a luxury sector trend towards understated 'quiet luxury'.
Prada has been clear about its rationale, emphasising that Versace possesses 'significant untapped growth potential'. Leadership has acknowledged the brand's global recognition has not been fully matched by its recent market performance. Taking the helm as Versace's new executive chairman will be Lorenzo Bertelli, marketing director and head of sustainability for the Prada Group and heir to the family empire.
Integration and Manufacturing Synergies
A core part of Prada's strategy involves integrating Versace into its prestigious Italian manufacturing and supply chain network. Lorenzo Bertelli recently highlighted the operational synergies, noting that 'making a bag for one brand or another, the know-how is the same'. Specifically, Versace products will soon be produced alongside Prada and Miu Miu items at the group's Scandicci leather goods factory in Tuscany.
This forms part of a substantial ongoing investment in manufacturing infrastructure. The Prada Group has committed €60 million (£52 million) to its supply chain this year alone, funding new facilities near Siena and Perugia, expanding its Church’s footwear factory in Britain, and enlarging another Tuscan site. This builds on €200 million (£175 million) invested between 2019 and 2024.
Creative and Commercial Prospects
Despite the ownership change, Versace's creative direction is already on a new path. The brand recently debuted its first collection under new designer Dario Vitale at Milan Fashion Week in September 2025, a move executives stated was independent of the Prada deal. The show, which famously featured Paris Hilton closing the runway, signalled a fresh creative impetus.
Financially, the acquisition alters the revenue structure of the enlarged Prada Group. Analyst presentations indicate that Versace will account for approximately 13% of the group's pro-forma revenues. This compares to a 22% share for Miu Miu and a dominant 64% for the flagship Prada brand. For context, Versace contributed around 20% to Capri Holdings' €5.2 billion (£4.5bn) revenue in 2024, while the Prada Group's own revenues grew 17% to €5.4 billion (£4.5bn) last year.
Bertelli has indicated no immediate plans for sweeping executive changes at Versace. The focus appears to be on harnessing Prada's industrial strength and artisanal training programmes—its in-house academy has trained 570 artisans over 25 years—to bolster Versace's production and ultimately, its market position. This landmark deal sets the stage for a fierce new chapter in the global luxury wars, with a revitalised Versace as a central player.
