Prada Expands Portfolio through Versace Acquisition

Prada buys Versace, and it marks one of the most significant changes in the world in terms of lifestyle and fashion leadership.

The international fashion and lifestyle are on the verge of a significant rearrangement with the official completion of the agreement between Prada Group and Versace, the luxury rivals, for the value of £1.25 billion. The group asserted that it had been granted all the regulatory approvals, which was a watershed move for two of the most influential houses in lifestyle and fashion in Italy.

Lorenzo Bertelli, CMO of Prada, will assume the role of executive chairman of Versace. With the solid momentum of its Miu Miu line, Prada Group views the acquisition as a strategic move toward a different aesthetic in the lifestyle and fashion industries.

Chief Executive Andrea Guerra referred to Versace as a brand that had invented fashion as it is today, highlighting its historic relationship to popular culture and its attractiveness to a new consumer market. The brand is globally known because of its glamorous image and boldness, which was established in 1978 by Gianni Versace.

Bertelli stated that the acquisition met two crucial criteria: a manageable financial risk and an outstanding brand value. He termed this deal as being worth it, as Versace has unparalleled recognition among the luxury brands.

The change follows the change in leadership of Versace since Donatella Versace has resigned as the creative leader after close to 30 years. She was succeeded by Dario Vitale, who was the previous design director at Miu Miu.

This action helps Prada to reinforce their leading role in style and fashion, diversify the portfolio, and retain the legacy of one of the most iconic labels in the industry.