In a landmark move reshaping the global luxury fashion landscape, the Italian Prada Group has officially finalised its takeover of the iconic but struggling brand Versace. The deal, valued at a substantial 1.25 billion euros (approximately $1.45 billion), was confirmed completed on Tuesday, 2nd December 2025, after receiving all necessary regulatory approvals.
A New Chapter for Versace Under Prada's Wing
Prada announced the successful conclusion of the acquisition from Capri Holdings, the American group that previously owned Versace. The transaction, first announced earlier in the year, has now cleared all hurdles, allowing Prada to integrate the flashy rival into its prestigious portfolio. This strategic purchase marks one of the most significant consolidations in the high-fashion industry in recent years.
Leadership of the newly acquired house will see a direct hand from the Prada family. Lorenzo Bertelli, the son of legendary designer Miuccia Prada and the group's Chief Marketing Officer, has been appointed as the Executive Chairman of Versace. This move signals Prada's intent to steer Versace's future direction closely.
Contrasting Fortunes: Robust Prada Meets Waning Versace
The acquisition comes at a time when the two brands were on notably different trajectories. Analysts note that Versace's market lustre and momentum had been dimming in recent seasons. In contrast, the Prada Group has been enjoying robust financial health, significantly bolstered by the runaway success of its younger, more accessible Miu Miu line.
During a recent factory visit, Prada's Chief Executive Andrea Guerra addressed the notable differences between the brands. He emphasised that Versace is "extraordinarily different from our other brands in the portfolio." Guerra credited Versace with inventing modern fashion as we know it, bringing it decisively into the realm of popular culture. He stated that the label's flamboyant DNA "strikes a different aesthetic and appeals to a different consumer," suggesting a complementary rather than overlapping strategy within the group.
Strategic Implications for the Global Luxury Market
This mega-deal positions the Prada Group as an even more formidable player against French conglomerates like LVMH and Kering. By adding Versace's distinct, glamour-driven identity to a stable that includes the minimalist Prada and the youthful Miu Miu, the group now covers a broader spectrum of luxury consumers.
The key challenge will be revitalising the Versace brand while preserving its iconic, bold identity. With Lorenzo Bertelli at the helm and the financial and strategic backing of a thriving Prada Group, the fashion world will be watching closely to see if this union can restore Versace's shine and drive new growth in a competitive market.
For Nigerian fashion enthusiasts and investors in the luxury sector, this consolidation highlights the dynamic and ever-evolving nature of global fashion, where legacy brands adapt to secure their future.
