Versace returns to Italian ownership in Sh177B Prada Group acquisition

Luxury fashion house Versace has returned to Italian ownership today.

Milan-based luxury conglomerate Prada Group finalised the acquisition of the brand from US-based Capri Holdings in a deal valued at USD1.375 billion (Sh177.9 billion).

This acquisition marks a historic repatriation for Versace.

The brand had operated under American control since 2018, prior to which it was 80% owned by the Versace family (Donatella, Santo, and Allegra) with a minority stake held by the Blackstone Group.

The deal consolidates two of Italy's most influential fashion dynasties, Prada and Versace, under a single roof.

Donatella Versace, who transitioned to the role of Chief Brand Ambassador in April, welcomed the move as a return to the brand’s cultural roots

The merger places Versace alongside Prada’s existing portfolio, which includes Miu Miu, Church’s, and Car Shoe, strengthening the group's position against market rivals and French luxury giants LVMH and Kering.

Lorenzo Bertelli, the 37-year-old son of Miuccia Prada and Patrizio Bertelli, assumes the role of Executive Chairman at Versace immediately.

Previously the Prada Group’s marketing director, Bertelli will oversee the integration of Versace into Prada’s Italian manufacturing ecosystem.

Operational control will shift to Prada’s headquarters in Milan, although Versace’s creative atelier will remain independent.

Dario Vitale, recently appointed as Versace’s head designer, continues to lead the brand’s aesthetic direction.

Prada Group intends to restructure Versace’s production model.

Unlike Prada, which owns the majority of its supply chain, Versace has historically relied on external licensing and third-party manufacturers.

The integration plan involves shifting Versace’s leather goods and footwear production into Prada’s existing industrial sites in Tuscany and Marche.

The acquisition creates a third major European luxury conglomerate, positioning Prada Group to compete directly with French heavyweights LVMH and Kering.

For the consumer market, this consolidation signals a shift in distribution strategy.

Prada Group notoriously limits wholesale distribution of their pieces to protect brand exclusivity.

Consequently, third-party retailers may face reduced inventory allocations as the group prioritises direct-to-consumer sales through owned flagship stores and e-commerce platforms.

This strategy often results in uniform global pricing and a reduction in off-season discounting, aligning Versace’s market positioning more closely with the exclusive scarcity model maintained by Miu Miu and Prada.