A Birthday Gift Worth $1.4 Billion: Prada Acquires Fashion Rival Versace, Donatella Versace Reacts

Prada has now acquired its fashion rival Versace, following an eight-month integration process. The Italian luxury label confirmed the acquistion worth $1.4 billion in a one-sentence statement. The merger follows Versace's consecutive underperformance within Capri Holdings, a US-based company. The final takeover took place on December 2, coinciding with the birth anniversary of Versace founder Gianni Versace.

Social media users have dubbed the takeover ‘a gift worth $1.4 billion’ from Prada to Versace. The move was welcomed by Donatella Versace, the sister of the founder of the label and Creative Chief until March this year. Taking to her Instagram account, she remembered her brother Gianni and penned a note warmly accepting the takeover.

She shared monochrome throwback photos of her brother from 1979, a year after he founded Versace. In the second image, she cropped the original photo featuring Gianni Versace, Valentino, Giorgio Armani, & Miuccia Prada to showcase only her brother and Prada in the frame. The picture, she shared, was clicked by Karl Lagerfeld in September 1996, a year before the passing of Gianni Versace.

Fans, followers and friends of Donatella took to the comment section to send her best wishes and to remember her brother fondly.

As per AP News, Prada said in a one-line statement that the acquisition had been completed after receiving all regulatory clearances. Capri Holdings, which owns Michael Kors and Jimmy Choo, said the money would be used to pay down debt. Prada heir Lorenzo Bertelli is set to steer Versace’s next phase as executive chairman, in addition to his roles as group marketing director and sustainability chief. Versace already has begun a creative relaunch under a new designer, Dario Vitale, who previewed his first collection during Milan Fashion Week in September. He was previously head of design at Miu Miu, but his move to Versace was unrelated to the Prada deal, executives have said.

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