Prada Acquires Versace – A New Merger in the Fashion Industry

On Tuesday, Prada announced that it has acquired the famous Versace brand. This brings two major Italian fashion houses under one roof, reports BBC.

The deal is valued at $1.38 billion, significantly lower than the price Versace was purchased for in 2018 by Capri Holdings.

The acquisition expands Prada’s portfolio of designer brands, including Miu Miu, and strengthens its ability to compete with international rivals such as the French conglomerate LVMH, which owns Louis Vuitton, Dior, and Fendi.

Versace’s creative director Donatella Versace stepped down after 27 years, and was replaced by Dario Vitale, formerly the director of Prada’s youth-focused brand Miu Miu.

Prada CEO Andrea Guerra highlighted Versace’s "huge potential". "The journey will be long and will require disciplined execution and patience," he said.