Prada Acquires Versace For $1.4 Billion On Gianni Versace's 79th Birth Anniversary - A Fashion Power Move

After a long courtship period, Italian luxury house Prada has finally acquired its elite fashion rival Versace from US-based Capri Holdings for $1.4 Billion on Tuesday, marking the late Gianni Versace's 79th birth anniversary. 

This deal between two of the most revered fashion labels comes after Versace, founded in 1978 by Gianni Versace, wasn't performing well under the New York headquartered luxe-fashion group, which consists of iconic brands like Michael Kors, and Jimmy Choo.

While Prada confirmed the acquisition following through after all regulatory approvals, Capri Holdings, which said it will apply proceeds toward debt reduction.

Meanwhile, Italian fashion designer Donatella Versace welcomed the Prada-Versace deal in an Instagram post, recalling the fashion to fragrance brand's late founder, her brother, Gianni Versace, who had passed away on July, 1997.

"Today is your day and the day Versace joins the Prada family. I am thinking of the smile you would have had on your face," she wrote in a post that also featured a 1996 photo of Gianni Versace with Miuccia Prada.

This acquisition will allow Prada heir Lorenzo Bertelli to oversee the new chapter of Versace as executive chairman. He will also hold the designation of sustainability chief, and group marketing director.

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Earlier, Lorenzo Bertelli, the son of Prada owners Miuccia Prada and Patrizio Bertelli, had told Reuters in he will become executive chairman of Versace once the integration is complete, while adding that Prada had been keen on a deal for several years.

Bertelli, who strongly pushed for the acquisition, said Versace met two key conditions: that it was not too risky financially and that it was worth it, given the brand ranks among the world's leaders in terms of awareness, as per a Reuters report.

In March, a few week ahead of this major acquisition, Donatella Versace stepped down as creative chief after almost three decades in the role. Dario Vitale, ex-design director at Miu Miu, took over from her.

The Prada Group also owns high fashion women's clothing and accessory brand Miu Miu, footwear brands Church's and Car Shoe, as well as the sailing team Luna Rossa.