Prada Acquires Versace in €1.25 Billion Deal, Reshaping the Italian Luxury Fashion Landscape
- camilarosiaz
- 10 minutes ago
- 3 min read
Prada has agreed to acquire Versace in a €1.25 billion deal, bringing two of Italy’s most influential fashion houses under the same corporate umbrella.
Yasushi Kanno/AP, James Ross/AAP, Versace, Prada, Wikimedia, The Conversation
Versace, founded in Milan in 1978, has faced financial challenges in recent years and struggled to compete with the scale of global luxury conglomerates. The brand was previously owned by Capri Holdings, which also controls Michael Kors and Jimmy Choo. The sale follows a period of transition for Versace, including the departure of longtime creative director Donatella Versace in March. She was replaced by Dario Vitale, a designer who previously worked within the Prada Group, marking the first time in nearly five decades that the brand has not been creatively led by a member of the Versace family.
For Prada, the acquisition is widely seen as a strategic move to keep Versace under Italian ownership and prevent it from being absorbed by major French luxury groups such as LVMH or Kering, which dominate the global fashion market.
Gianni Versace with Claudia Schiffer and Naomi Campbell, March 1996 in Milan. AP Photo/P.Castaldi
Two brands, two philosophies
Versace built its reputation on a bold, sensual aesthetic shaped by founder Gianni Versace, whose designs were embraced by global celebrities and became synonymous with glamour and excess. After Gianni’s death in 1997, Donatella Versace carried the brand forward, overseeing years of high-profile runway shows and campaigns. Despite its strong identity, Versace has struggled to maintain the same financial scale and market reach as its larger competitors.
Prada’s trajectory is markedly different. Founded in 1913 as a leather goods company, it evolved into a fashion powerhouse under Miuccia Prada, who took creative control in 1978. Known for intellectual, minimalist and sometimes deliberately awkward design, Prada redefined luxury through concepts such as “ugly chic” and unconventional materials, including the use of nylon in high-end accessories. Alongside its sister label Miu Miu, Prada has become known for shaping long-term fashion discourse rather than short-term trends.
Today, the Prada Group is publicly traded and valued at more than US$15 billion, with majority ownership held by Miuccia Prada and Patrizio Bertelli.
Rivalry and consolidation
Miuccia Prada adjusts clothes on Italian-French top model Carla Bruni in 1994. Vittoriano Rastelli/Corbis via Getty Images
Prada and Versace have long been framed as stylistic opposites within Italian fashion. Prada represents restraint and conceptual design, while Versace is associated with maximalism and overt sensuality. Yet their rivalry has always existed within a larger global context, where Italian fashion houses compete with powerful French groups that control much of the luxury market.
By acquiring Versace, Prada effectively ends a symbolic rivalry between two Italian brands while strengthening Italy’s position in an increasingly consolidated industry.
What comes next
Prada has a history of strategic investments in other luxury houses, including past stakes in Gucci and Fendi. However, the Versace acquisition is its most significant move in years and comes at a time when luxury brands are increasingly focused on ultra-wealthy consumers rather than mass-market appeal.
Versace has traditionally occupied a more accessible segment of luxury, while Prada has leaned toward exclusivity and craftsmanship. Under Prada’s ownership, Versace is expected to retain its distinct identity, while benefiting from Prada’s manufacturing expertise, operational discipline and global infrastructure.
The challenge will be balancing Versace’s bold heritage with Prada’s measured approach, while deciding which segment of the luxury market Versace should ultimately target.
Whether this partnership strengthens both brands or exposes their differences remains to be seen. What is clear is that the deal marks a significant shift in the structure of Italian luxury fashion—and a rare moment of consolidation outside the French-dominated luxury system.