In a bold move within the luxury fashion world, Prada has successfully acquired Versace in a deal valued at $1.38 billion. This strategic acquisition positions Prada as Italy’s largest luxury fashion group, surpassing other major competitors in the market and making it a formidable player against the likes of LVMH and Kering, the French luxury giants.
A Stronger Footprint in the Fashion World
By bringing Versace into its portfolio, Prada is setting the stage to elevate its global presence and diversify its offerings. The acquisition is expected to help Prada attract a wider customer base and strengthen its market position, especially as it now boasts a combined revenue of over €6 billion. This move allows the company to better compete against global luxury titans.
Key Terms of the Deal
The €1.25 billion deal is expected to close in the second half of 2025. Prada plans to finance this acquisition with €1.5 billion in new debt, ensuring they can maintain their growth trajectory while expanding their luxury brand portfolio.
Leadership Changes and New Creative Vision
As part of the deal, Donatella Versace will step down as the creative director of Versace and transition into the role of chief brand ambassador. This shift will allow Dario Vitale, a creative force known for his work with Prada’s Miu Miu line, to take over as Versace’s new creative director. Vitale’s appointment marks a new chapter for the brand, with fresh creative leadership steering the direction of this iconic label.
What’s Next for Prada and Versace?
This acquisition not only marks a turning point for Prada, but it also solidifies Versace’s position in the luxury fashion world, as it now becomes part of a larger, more competitive group. With this strategic move, Prada aims to leverage Versace’s storied legacy and appeal to a broader, global audience.
