Prada said on Tuesday it had completed the acquisition of smaller Italian rival Versace, a brand the luxury group said it had long coveted.
Prada signed a definitive agreement in April to buy Versace from US-based Capri Holdings for about 1.3 billion euros ($1.51 billion), after Capri's sale to Tapestry was scrapped in the wake of a challenge by antitrust regulators.
Lorenzo Bertelli, the son of Prada owners Miuccia Prada and Patrizio Bertelli, told Reuters in November that he will become executive chairman of Versace once the integration is complete. He said that Prada had been keen on a deal for several years.
"There had already been contacts during the COVID period, there were talks even before Capri's sale to Tapestry. When that deal fell through over antitrust issues, we came back and tried to speed things up," Lorenzo Bertelli said.
"It was something that had been in the works for a long time," he added.
Founded in 1978 by Gianni Versace in Milan, the brand renowned for its bold, glamorous aesthetic will join the group's two main labels – its namesake Prada and the smaller but fast growing Miu Miu - marking a sharp strategic shift for the Italian fashion house.
Bertelli, who strongly pushed for the acquisition, said Versace met two key conditions: that it was not too risky financially and that it was worth it, given the brand ranks among the world's leaders in terms of awareness.
In March, a few weeks before the deal with Prada was announced, Donatella Versace stepped down as creative chief after almost three decades in the role.
Dario Vitale, formerly design director at Miu Miu, took over the role.
