Italian luxury brand Prada has signed a deal with US-based Capri Holdings to acquire its fashion rival Versace for €1.25 billion (around $1.38 billion). This major move comes shortly after Donatella Versace stepped down as Versace’s creative director in March.

Discussion between Prada and Capri Holdings reportedly began in February. Speaking about the deal, Prada’s Chairman and Executive Director Patrizio Bertelli said, “We’re excited to welcome Versace to the Prada Group. Both brands value creativity, craftsmanship, and heritage, and we look forward to starting a new chapter together.”

Donatella Versace shared her thoughts on Instagram after the announcement of Prada acquiring Versace. She wrote, “I am absolutely delighted for Versace to become part of the Prada family. Gianni and I have always admired Miuccia, Patrizio, and their family. I’m honoured that Versace is now in the hands of such a trusted Italian family business, and I’m ready to support this new era in any way I can.”

Donatella had led Versace as its creative director since 1997, after the tragic murder of her brother, Gianni Versace. While she stepped down from the role in March this year, she now serves as the chief brand ambassador for the label. Meanwhile, Dario Vitale, formerly with Miu Miu, has been appointed as chief creative officer of Versace.

Prada, known for its clean and minimalist style, is joining forces with Versace, famous for its bold and glamorous designs. Experts say this powerful pairing could help the Italian group compete with French luxury leaders like LVMH and Kering (owner of Gucci), especially at a time when the global luxury fashion market is facing a slowdown.
Prada already owns popular brands like Miu Miu and Church’s, while Capri Holdings, now selling Versace, also owns Michael Kors and Jimmy Choo.

 

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