Prada, Versace Deal Completed

MILAN – The Prada Group now officially controls the Versace brand, as the closing of the acquisition was reported on Tuesday. The date, Dec. 2, coincides with the birthday of the late Gianni Versace.

In a brief statement, Prada said it had “received all the required regulatory clearances” to successfully complete the purchase. In September, the group received the European Commission’s green light to acquire Versace’s parent Givi Holding Srl.

Lorenzo Bertelli, head of CSR at the Prada Group, and the son of Patrizio Bertelli and Miuccia Prada, is expected to take on the role of executive chairman of Versace.

Prada also controls the Miu Miu, Car Shoe and Church’s brands.

In April, the Prada Group revealed the acquisition of Versace from Capri Holdings for an enterprise value of 1.25 billion euros, shortly after Donatella Versace was named chief brand ambassador and left the creative director role after almost three decades at the helm of the brand.

She was succeeded by Miu Miu alum Dario Vitale, who unveiled his first collection in September, receiving positive reviews from retailers for his colorful and audacious designs that he said embraced Gianni Versace’s legacy. Donatella Versace did not attend Vitale’s debut.

Upon the news of the deal in April, Lorenzo Bertelli said that “a lot of people may think that Versace is far away from the aesthetics of our existing brand portfolio, but I believe this is exactly a strength for our group, because there are no overlaps in terms of creativity and in terms of customers.”

For this reason, the acquisition “is super important to really reach new audiences and to express a different kind of message,” he said, adding he was confident in the “huge potential” of Versace.

In the first half, Prada Group revenues rose 8 percent to 2.74 billion euros. Chief financial officer Andrea Bonini at the time said Versace was expected to achieve revenues of $810 million in 2024 with an operating profit margin forecast to be high-single-digit negative.

The brand operates through a global network of 227 stores. The Versace business was not included in Capri Holdings’ first-quarter sales as it is being categorized as a discontinued operation.