The haute couture industry has just witnessed one of the most relevant moves in recent years. Prada, one of Italy’s most renowned fashion houses, has confirmed the purchase of Versace for a sum of 1.25 billion euros, in a deal that redefines the European luxury landscape.
This merger unites two major Italian fashion icons under one group, consolidating their position against giants such as LVMH and Kering. According to sources close to the deal, the acquisition will allow both brands to maintain their identity and style, while taking advantage of synergies in areas such as distribution, marketing and production.
Donatella Versace, current creative director of the brand founded by her brother Gianni in 1978, will continue to lead the design of the firm, now as part of the conglomerate led by Patrizio Bertelli and Miuccia Prada. Prada has assured that the creative autonomy of Versace will be respected and that the main objective is to enhance its global presence without altering its essence.
The deal, which has been finalized after months of negotiations, will allow Prada to strengthen its presence in strategic markets such as Asia and North America, where Versace has a strong fan base. In addition, the deal is expected to boost the combined growth of the new group, which will now compete directly at the top of the luxury sector.
The purchase was financed through a combination of equity and external financing, and is expected to be fully completed in the coming months, following regulatory approval.
With this acquisition, Prada not only expands its portfolio, but also takes a decisive step towards consolidating its position as an absolute benchmark in global luxury fashion. The future of Italian style is now written in two voices: Prada and Versace.
