Prada completes acquisition of Versace for $1.5 billion

Prada declared that it had successfully acquired Versace, an Italian competitor that the luxury conglomerate claimed it has long desired.

Prada announced a comprehensive agreement in April to buy Versace from US-based Capri Holdings for around $1.5 billion.

Founded in 1978 by Gianni Versace in Milan, the brand, famed for its strong and glamorous design. Now will join the group’s two major labels: its eponymous Prada and the smaller but fast developing Miu Miu. It represents a major strategic shift for Prada.

Donatella Versace, sister of the late Gianni, remarked that the closure of the deal coincided with his birthday.

Miuccia Prada and Patrizio Bertelli owners of Prada

In November, Lorenzo Bertelli, the son of Miuccia Prada and Patrizio Bertelli, the owners of Prada, informed Reuters that he would take over as executive chairman of Versace after the integration was finished. He added Prada has been interested in a transaction for several years.

Bertelli, a fervent supporter of the acquisition, claimed that Versace satisfied two crucial requirements: that it wasn’t overly risky financially and that it would be beneficial considering the brand’s widespread recognition.

In March, a few weeks before the Prada purchase was revealed, Donatella Versace quit as chief creative officer after nearly three decades in the post.