In a major shakeup in the luxury fashion industry, Italian luxury fashion house Prada has reached a deal with US group Capri Holdings to buy rival fashion house Versace for 1.25 billion euros ($1.38 billion). This acquisition comes after Donatella Versace stepped down from her role as the creative director at Versace in March this year.
Prada’s Chairman and Executive Director Patrizio Bertelli said, “We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship and heritage.” The negotiations to buy Versace between Prada and Capri had begun in February.
Donatella also took to her Instagram to share the news of this acquisition. She wrote, “I am absolutely delighted for Versace to become part of the Prada family. Gianni and I have always had a huge admiration for Miuccia, Patrizio and their family. I am honoured to have the brand in the hands of such a trusted Italian family business and I am ready to support this new era for the brand in any way that I can.” 
Donatella had been the creative director of Versace since 1997. She took over after the murder of her brother, Gianni Versace. She is currently the chief brand ambassador for Versace, while Dario Vitale – former design and image director of Miu Miu – has been named as the chief creative officer.
With this acquisition, experts believe that they can now compete more aggressively with French giants such as LVMH and Gucci owner Kering, especially at a time when the luxury fashion industry is witnessing a global slowdown.
READ MORE: Is There Anything Mango Can’t Do in the Kitchen? Must-try Recipes from Chefs
