Investment and Acquisition: The Deal Is Done: Prada Finalizes Acquisition of Versace

Though long anticipated, the official confirmation of the deal still sent ripples through the fashion industry. On April 10, 2025, Prada Group formally announced its acquisition of Italian luxury brand Versace from Capri Holdings, concluding a transaction that had been in the works since late last year. While the final price, valued at 1.25 billion euros, marked a reduction from Capri’s original acquisition cost of 1.83 billion euros, Prada considers this an important strategic investment.

A Planned Move Forward

Despite the industry’s excitement, Prada’s leadership remained composed. Shortly after the announcement, CEO Andrea Guerra and family successor Lorenzo Bertelli made it clear that this was never meant to be an overnight sensation. They emphasized that rather than a disruptive revolution, the deal should be viewed as a patient and deliberate evolution.

Chairman Patrizio Bertelli welcomed Versace into the group, reaffirming respect for the brand’s identity. "We aim to continue Versace’s legacy while reinterpreting its aesthetic with the full support of the Prada Group’s platform." On the creative front, changes are also underway. Donatella Versace will step into the role of brand ambassador, with former Miu Miu design director Dario Vitale taking over as creative director.

While Versace will retain its cultural DNA, its product strategy, retail execution, and operations will be aligned with Prada Group’s integrated platform. This structural shift is expected to not only strengthen Versace’s creative direction and brand equity but also enhance profitability and optimize its distribution framework.

A Cultural Collision, and the Potential for Fusion

Prada and Versace represent two very different aesthetic languages. One is restrained and minimal, the other opulent and bold. Yet it is precisely this contrast that creates the potential for complementary fusion. As Lorenzo Bertelli noted, "We do not need to transform Versace entirely. What we need are smart changes and patience."

This cultural and stylistic dialogue is set to become a key element of Prada’s differentiated brand strategy. Maintaining Versace’s distinct identity while introducing more robust process controls and brand management is something Prada has consistently done well.

A Multi-brand Matrix under Vertical Integration

Guerra stated that over the past three years, Prada has completed a vertical integration of its organizational structure, unifying management across brands such as Prada, Miu Miu, and Church’s. Versace, as the newest addition, will be incorporated into this framework, with its current CEO Emanuel Gintzburger remaining at the helm.

Regarding Versace’s existing licensing deals in eyewear and fragrance, Guerra explained that the group would evaluate the alignment between licensing activities and the core brand and would make adjustments when appropriate. This indicates Prada may gradually shift Versace away from external channels and toward a more controlled retail structure.

A notable challenge lies in Versace’s current overreliance on wholesale and licensing models. In contrast, Prada maintains stronger control through a direct-to-consumer retail system. Bringing Versace in line with this approach, especially balancing between full-price and outlet sales, will be a critical structural task. Guerra highlighted this issue as one Versace must address to ensure long-term stability.

That said, the acquisition is not about cost cutting. Prada made clear that the goal is to drive revenue growth. The focus will be on enhancing brand building, channel integration, and product development, rather than simply pursuing financial synergies.

Lessons from the Past, with a Different Approach Today

It is worth noting that this is not Prada’s first attempt at building a luxury empire. Back in 1999, the company partnered with LVMH to acquire Fendi and later acquired Jil Sander and Helmut Lang, only to divest them a few years later due to strategic and managerial missteps.

Today, however, with Lorenzo Bertelli emerging as the new generation leader, there is a shift toward a more pragmatic, methodical approach. This acquisition is not just a continuation of Patrizio Bertelli’s ambitions, but also a joint endeavor reflecting the family’s evolving strategy.

Prada’s acquisition of Versace is not a dramatic business saga, but a calculated move that balances ambition with restraint. In a fashion world full of headlines and flash, the real challenge lies in translating brand value from paper to practice. Over the next five years, the true impact of this deal on both houses will be something worth watching closely.