In one of the biggest moves in global luxury fashion this year, the Prada Group has officially acquired its Milanese rival Versace in a deal valued at 1.25 billion euros (nearly $1.4 billion). The acquisition unites two iconic but contrasting Italian fashion houses Prada’s “ugly chic” minimalism and Versace’s bold, glamorous identity under a single corporate umbrella.
The deal, long anticipated by the market, is expected to revitalize Versace after years of uneven performance under U.S.based Capri Holdings, especially in the post pandemic period. In its brief confirmation, Prada said the acquisition was completed after securing all required regulatory approvals, marking a major strategic expansion for the luxury group.
Prada’s Investment Strategy Signals Long-Term Commitment
The acquisition arrives as Prada continues heavy investments in its European supply chain. In 2024 alone, the group has deployed 60 million euros toward production expansion, including:
- A new leather goods factory near Siena
- A new knitwear plant near Perugia
- Increased output at Church’s footwear manufacturing site in the UK
- Expanded capacity across additional facilities in Tuscany
These investments are part of a broader 200 million euro strategic push between 2019 and 2024 to strengthen manufacturing capabilities and support brand growth.
Artisan Training Pipeline Strengthens Prada’s Workforce
A cornerstone of Prada’s strategy has been its artisan pipeline. Over 570 artisans have been trained in its internal academy across Tuscany, Marche, Veneto, and Umbria over the last 25 years. In 2023, Prada hired 70% of the 120 trainees, and training numbers rose by 28% to 152 this year.
A New Era for Versace
With Versace now part of Prada Group’s expanding ecosystem, the deal is expected to reshape the competitive landscape of Italian luxury fashion setting the stage for renewed global momentum for both brands.
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