MILAN — The Prada Group has received the European Commission’s green light to acquire Versace.
On Tuesday, the EU cleared Prada’s purchase of Versace’s parent Givi Holding Srl stating that it “would not raise competition concerns, given the companies’ limited market positions resulting from the proposed transaction.”
The operation, in accordance with EU regulations on concentration, pertains mainly to the design, production and distribution of luxury goods.
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Prada, which also controls the Miu Miu, Car Shoe and Church’s brands, has said its Versace acquisition would close in the second half of 2025.
In April, the Prada Group revealed the acquisition of Versace from Capri Holdings for an enterprise value of 1.25 billion euros, shortly after Donatella Versace was named chief brand ambassador and left the creative director role after almost three decades at the helm of the brand.
She was succeeded by Miu Miu alum Dario Vitale, who unveiled his first collection for the brand last Friday, receiving positive reviews from retailers for his colorful and audacious designs that he said embraced Gianni Versace’s legacy. Donatella Versace did not attend Vitale’s debut.
Upon the news of the deal, Lorenzo Bertelli, head of CSR at Prada Group, said that “a lot of people may think that Versace is far away from the aesthetics of our existing brand portfolio, but I believe this is exactly a strength for our group, because there are no overlaps in terms of creativity and in terms of customers.” For this reason, the acquisition “is super important to really reach new audiences and to express a different kind of message,” adding he was confident in the “huge potential” of Versace.
In the first half, Prada Group revenues rose 8 percent to 2.74 billion euros. Chief financial officer Andrea Bonini at the time said Versace was expected to achieve revenues of $810 million in 2024 with an operating profit margin forecast to be high-single-digit negative. The brand operates through a global network of 227 stores. The Versace business was not included in Capri Holdings’ first-quarter sales as it is being categorized as a discontinued operation.