**Prada Acquires Versace for $1.38 Billion, Consolidating Italian Luxury Portfolio**

**Milan, Italy – [Insert Date]** – Italian luxury fashion group Prada has successfully completed its acquisition of Versace for $1.38 billion, a deal that significantly undervalues the $2 billion price tag Capri Holdings paid for the iconic brand in 2018. This strategic move consolidates two prominent Italian fashion houses under the same umbrella, aiming to strengthen Prada’s competitive position against global luxury conglomerates like LVMH.

The acquisition comes after a period of decelerating sales for Versace and other brands within Capri Holdings’ portfolio, ultimately resulting in an estimated loss of $700 million for the former owner. The proceeds from the sale are expected to assist Capri Holdings in reducing its existing debt.

Following the acquisition, a significant leadership change has taken place at Versace. Donatella Versace, who served as the brand’s creative director for an impressive 27 years, has stepped down from her role. She has been succeeded by Dario Vitale, formerly the design director at Miu Miu, another brand within the Prada Group.

Prada expressed confidence in the future of Versace, indicating plans to leverage the brand’s “enormous potential.” However, the group also acknowledged that the revitalization process would necessitate “disciplined execution and patience.” The integration of Versace into the Prada Group is seen as a pivotal step in expanding its presence in the high-end luxury market and enhancing its global reach.