Prada Snaps Up Rival Versace in $1.4B Deal - CEO Andrea Guerra Rules Out More M&A

Prada Group, a famous Italian fashion house, announced on Tuesday, 2 December 2025, that it has completed its acquisition of Versace from Capri Holdings. The announcement comes after the regulatory requirements were submitted and cleared.

Prada and Versace, once the fiercest competitors on the runway, are now under one roof. The £1.12 billion ($1.4 billion) acquisition marks a historic turning point, creating a unified luxury titan poised to reinvent the high-fashion business landscape.

A Symbolic Return to Italian Roots

Donatella Versace, the sister of Gianni Versace, the founder of the iconic fashion brand Versace, celebrated the completion of the deal via social media. She mentioned that the completion of the acquisition coincided with the birthday of her brother Gianni Versace, the late founder of the luxury label.

'Happy Birthday, Gianni,' the 70-year-old Italian fashion designer and businesswoman wrote. '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. I miss you, always.'

Industry analysts view the acquisition as a strategic rescue mission. Capri Holdings acquired Versace in 2018 for $2.1 billion (approximately £1.68 billion). The sale to Prada for $1.4 billion (£1.12 billion) represents a significant write-down, reflecting the brand's struggle to maintain momentum in a polarised post-pandemic market.

By integrating Versace into a portfolio that includes the commercially successful Miu Miu label, Prada aims to leverage operational synergies while maintaining the distinct aesthetic identities of the houses—Prada's intellectual minimalism versus Versace's unapologetic glamour.

Leadership Restructuring and Succession

Under the terms of the deal, Lorenzo Bertelli, the son of Miuccia Prada and Patrizio Bertelli, will assume the role of Executive Chairman of Versace. This appointment is widely interpreted as a crucial step in the group's succession planning.

Bertelli, who has been instrumental in modernising the group's digital strategy, will also retain his responsibilities as group marketing director and head of corporate social responsibility.

Meanwhile, Andrea Guerra will continue as CEO of the Prada Group. Guerra noted that the company is ready for this new chapter and plans to focus on integrating Versace over the next three years, indicating that he will guide the group through this pivotal phase.

Who Is Andrea Guerra, the Chief of Prada?

Guerra is a veteran executive respected for his operational discipline. He took the helm of the brand in 2023, tasked with professionalising the management structure alongside the founding family.

Contrary to some reports citing energy sector experience, Guerra's reputation was forged primarily at Luxottica, where he served as CEO for a decade, and later at LVMH Hospitality Excellence. His background in managing complex global supply chains and brand portfolios is viewed as essential for stabilising Versace's operations.

Market Outlook

Meanwhile, Guerra stated that Prada currently has no plans to pursue additional mergers or acquisitions. He stressed that after the integration of Versace, the company will pause further purchases and instead concentrate on strengthening and expanding its existing brands. The focus will be on growing both Prada and Versace, ensuring that each label reaches its full potential under the group's management.

This conservative approach aligns with the broader luxury sector's pivot towards exclusivity and brand elevation amidst cooling global demand.