Private equity firm Blackstone Capital has taken a 20% stake in Italian fashion house Versace in a deal valuing the company at EUR1bn (US$823.31m).

Blackstone will inject EUR150m into the company, buying EUR60m of shares from parent firm GIVI Holding. On completion, the private equity firm will have one seat on the company's board.

The deal will allow Versace to invest in its retail store network in existing and emerging markets. It will also enable the company to bring forward plans to further develop its portfolio of brands, in particular Versus Versace, as well as its product offering, with a specific focus on accessories, and enhance its e-commerce business.

Group creative director, Donatella Versace, said: "I am very pleased to work with Blackstone and, in particular, with Stephen Schwarzman, whom I admire for his achievements and who shares the family's vision for the development of Versace. We have gained a strong and unique positioning in luxury fashion, and I believe that this investment in the company, together with our clear direction and our outstanding management team, will enable us to achieve Versace's potential."

Versace is expected to release its full-year results at the end of March. The company said it expects to announce revenues up around 18% to nearly EUR480m and EBITDA up more than 50% to at least EUR69m.