MILAN – The Prada Group has finalized its acquisition of Versace for $1.375 billion, marking a significant new chapter for the iconic Italian fashion house. This strategic operation aims to revitalize Versace, which experienced moderate performance under its previous ownership, Capri Holdings.

Lorenzo Bertelli, heir to the Prada empire, will assume the role of Executive Chairman at Versace, tasked with leading the brand into a new era. While there are no immediate plans for drastic changes to Versace’s existing management, Bertelli’s appointment signals a deliberate strategy to leverage Prada’s operational prowess.

The core strategy involves a nuanced combination of Prada’s renowned minimalist aesthetic with Versace’s distinctive maximalist style. This approach seeks to target distinct market segments and unlock Versace’s considerable growth potential. A key priority for the integration includes bringing Versace into Prada’s established Italian production system, with manufacturing plans already in motion.

Industry experts note that a significant challenge will be to reinvent Versace, making it appealing and relevant to contemporary luxury consumers. This effort will build upon the creative relaunch already initiated with the new designer, Dario Vitale. Crucial investments in the supply chain and dedicated training for artisans are fundamental pillars for Versace’s future success under Prada’s direction, aiming to enhance both product quality and production efficiency.