PRADA FINALIZES VERSACE ACQUISITION, PREPARES RELAUNCH AND ANNOUNCES THE DEPARTURE OF DARIO VITALE

Prada has closed the largest acquisition in its history in a move that reshapes the landscape of Italian luxury. The operation marks the beginning of a new chapter for Versace under the supervision of the Milan-based group.

Prada completed the biggest acquisition in its history with the closing of the deal to buy Versace, valued between €1.25 billion and US$1.5 billion according to various previous communications from the group. The integration represents a strategic shift for Prada, which will focus its efforts on relaunching the house founded by Gianni Versace, while ruling out additional acquisitions over the next three years.

Prada CEO Andrea Guerra said the group does not expect to pursue further deals in the near term. “Nothing is underway. We will remain committed to Versace for now,” he said during an event at the company’s leather goods factory in Scandicci, Italy. Guerra noted that the priority will be to stabilize and reposition the brand after a period of uneven results and internal changes.

The acquisition ends seven years of Versace’s ownership under Capri Holdings, which bought the firm in 2018. It also marks the beginning of a new leadership structure. Lorenzo Bertelli, son of Miuccia Prada and Patrizio Bertelli, will be appointed CEO of Versace once the administrative integration is completed. Bertelli confirmed in November that interest in acquiring Versace had been under evaluation for years, with previous contacts during the pandemic and before Capri’s failed negotiations with Tapestry due to antitrust concerns.

The deal brings together two of Italy’s best-known houses, each with contrasting aesthetics: Prada’s industrial minimalism and Versace’s maximalist, Mediterranean glamour. Prada has indicated that it will not dilute the creative identity of the acquired label and plans a phased relaunch supported by its vertically integrated production system, which includes 25 manufacturing sites and a global retail network.

The closing of the deal coincided with a moment of internal transition at Versace. In March, Donatella Versace stepped down as creative director after nearly three decades at the helm. She was succeeded by Dario Vitale, former design director at Miu Miu, who debuted with a single collection for Spring/Summer 2026. However, Vitale unexpectedly left his position eight months later, just 48 hours after the sale to Prada was finalized, according to Italian media reports citing WWD. The company has not announced who will take over the creative direction.

Vitale’s collection received mixed reviews, with some critics pointing to a perceived disconnect from the visual language built by Gianni and Donatella Versace. His departure comes as the industry anticipates a repositioning of the brand under Prada’s direct oversight, with the group stating its intention to preserve Versace’s aesthetic identity while optimizing production and distribution.

The acquisition strengthens Italy’s weight within the luxury sector. Industry data indicates that between 50% and 55% of global luxury goods production is concentrated in the country, home to one of the most extensive manufacturing ecosystems worldwide. Prada Group reported €5.43 billion in sales in 2024, a 17% year-on-year increase driven largely by growth at Miu Miu.

Guerra said the group aims to continue growing “at a faster pace than the industry” and added that the impact of U.S. tariffs “is now behind us.” With Versace joining a portfolio that already includes Prada and Miu Miu, the Italian conglomerate aims to strengthen its position against major global luxury groups.

The new phase leaves one key question open: who will define the creative direction of Versace going forward a decisive role for the relaunch Prada has planned.