Prada Group Acquires Fashion Rival Versace For Nearly $1.4 Billion, Reshaping The Global luxury landscape

The $1.38bn (£1.04bn) purchase price is significantly lower than the roughly $2bn that former owner Capri Holdings paid for Versace in 2018.

The deal strengthens Prada’s portfolio which already includes Miu Miu as the group looks to better compete with luxury giants such as LVMH, the parent company of Louis Vuitton, Dior and Fendi.

The acquisition comes after Donatella Versace stepped down as the brand’s creative chief in March, ending a 27-year tenure that helped define Versace’s bold, glamorous identity and its iconic Medusa logo.

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She took over the company in 1997 following the murder of her brother Gianni. Earlier this year, she was succeeded by Dario Vitale, formerly a design director at Miu Miu, Prada’s youth-focused luxury label.

The sale comes at a loss of around $700m, as Versace’s sales slowed alongside other Capri Holdings brands, including Michael Kors and Jimmy Choo.

Under Capri Holdings’ ownership, Versace moved away from its signature ornate style toward a more minimalist aesthetic while also raising prices.

Prada confirmed in a brief statement on Tuesday that it has completed the acquisition after securing all necessary regulatory approvals.

Capri Holdings said proceeds from the sale will be used to reduce its debt.

Capri chief executive John D Idol said: "We plan to use the proceeds to repay the majority of our debt, which will substantially strengthen our balance sheet."

Andrea Guerra, the chief executive of Prada, said earlier this year that Versace has "huge potential".

"The journey will be long and will require disciplined execution and patience," he said.