Prada Group purchases fashion rival Versace in $2.2bn deal
The move is expected to relaunch Versace's fortunes. (AP: Vincent Yu)
In short:
Italian fashion group Prada has completed its acquisition of smaller rival Versace, announced earlier this year for 1.25 billion euros ($2.2 billion).
Versace's appeal had been waning in recent years, unlike the Prada Group, which has been fuelled by the strong sales of its younger Miu Miu Line.
What's next?
Versace's new executive chair said he did not expect to make any swift executive changes at Versace.
The Prada Group has officially purchased Milan fashion rival Versace in a 1.25 billion euro ($2.2 billion) deal.
The deal puts the fashion house known for its sexy silhouettes under the same roof as Prada's "ugly chic" aesthetic and Miu Miu's youth-driven appeal.
The move is expected to relaunch Versace's fortunes, after middling post-pandemic performance as part of the US luxury group Capri Holdings.
Prada said in a one-line statement that the acquisition had been completed after receiving all regulatory clearances.
Versace's lustre had been waning in recent years, unlike that of the Prada Group. (Reuters: Kylie Cooper)
Versace's future
Prada heir Lorenzo Bertelli will steer Versace's next phase as executive chair.
The son of co-creative director Miuccia Prada and longtime Prada Group chairperson Patrizio Bertelli said he did not expect to make any swift executive changes at Versace.
Mr Bertelli said the company, which places among the top 10 most recognised brands in the world, has long been underperforming in the market.
Prada has underlined that the 47-year-old Versace brand offers "significant untapped growth potential".
Prada says it will not make any swift changes to Versace. (Reuters: Alessandro Garofalo)
Versace has been in the midst of a creative relaunch under a new designer, Dario Vitale, who previewed his first collection during Milan Fashion Week in September.
He had previously been head of design at Miu Miu, but his move to Versace was unrelated to the Prada deal, executives have said.
Prada's in-house manufacturing
The Prada Group has already begun preparations to incorporate cross-town rival Versace into its Italian manufacturing system.
"Making a bag for one brand or another, the know-how is the same,″ Mr Bertelli told reporters last week.
A Prada leather factory in Italy. (Reuters: Claudia Greco)
The Prada Group has invested 60 million euros in its supply chain this year, including a new leather goods factory near Siena.
Prada's efforts include an academy that has trained some 570 new artisans over the past 25 years in an in-house training academy operating in the Tuscany, Marche, Veneto and Umbria regions.