MILAN : Prada confirmed on Tuesday that it has closed the purchase of Versace from Capri Holdings, following a definitive agreement signed in April. The sale comes after Capri’s planned takeover by Tapestry collapsed under antitrust scrutiny, clearing the way for Prada to secure the brand it has “long coveted.”

Lorenzo Bertelli, son of Prada owners Miuccia Prada and Patrizio Bertelli, said in a Reuters interview last November that he will assume the role of executive chairman of Versace once integration is complete. He emphasised that the group had been pursuing the deal for several years, insisting the acquisition met two critical criteria: manageable financial risk and the exceptional global prestige Versace commands.

Founded in 1978 by Gianni Versace, the brand known for its daring glamour and bold prints now joins Prada’s flagship label and Miu Miu, signalling a significant expansion of the group’s fashion power. Bertelli, who championed the takeover, said the move aligns with Prada’s long-term vision of strengthening its house of brands.

Versace enters this new chapter after a challenging period. The global retail slowdown of 2022 dampened momentum, and early 2025 performance remained uneven. Capri Holdings, its former parent, said the sale would dramatically reduce company debt and allow renewed focus on Michael Kors and Jimmy Choo, with hopes of returning to growth by fiscal 2027.

The transition also comes shortly after a major creative shift at Versace. In March, Donatella Versace stepped down as creative chief after nearly three decades at the helm. Dario Vitale, formerly of Miu Miu, has since taken over creative leadership.

Industry analysts suggest the Prada-Versace union could recalibrate Milan’s luxury market, offering Versace access to stronger capital, refined distribution, and long-term strategy, cornerstones of Prada’s global success. The integration is expected to streamline manufacturing and pricing while positioning Versace for renewed international expansion.