Prada announced on Tuesday that it had acquired this force, bringing two major Italian luxury houses under one roof.
the $1.38bn (£1.04bn) deal Well under the $2bn that Versace’s former company, CAPRI Holdings, paid for the brand in 2018.
The acquisition expands Prada’s portfolio of designer brands – including MIU MIU – as it seeks to compete with rivals including French conglomerate LVMH, which owns Dior and Fendi in addition to Louis Vuitton.
Storied Designer Donatella Versace stepped down as the brand’s creative chief in March After 27 years at the fashion company, known for its glamorous styles and the iconic Medusa head logo.
He took over the company in 1997, after the murder of his brother Ganni. He was replaced by Dario Vitale, previously a Design Director of MIU MIU, PRADA’s Youth-Focused Luxury Brand.
The company was sold at a loss of around $700m after Versace’s sales slowed, along with the sale of CAPHI’s holdings, which included Michael Kors and Jimmy Choo.
During the ownership of Capri Holdings, Versace moved away from the known ornate designs to have a more minimalist fashion – while hiking prices.
Prada said in a statement on Tuesday that it had successfully completed the acquisition of Versace, having received all necessary regulatory clearances.
Proceeds from the sale will help cut debt for Capri Holdings, Versace’s former company, the company said.
Capri Chief Executive John D Idol said: “We plan to use the proceeds to repay the majority of our debt, strengthening our balance sheet.”
Andrea Guerra, the Chief Executive of Prada, said earlier this year that versace has “huge potential”.
“The journey is long and will require disciplined execution and patience,” he said.