Italy’s Versace agreed a deal with Blackstone yesterday that will see the US private equity firm take a 20 per cent stake in the fashion house in a deal valuing the company at €1 billion.

Blackstone will inject €150 million of fresh capital into Versace and will also buy €60 million of shares from family holding company GIVI Holding, the fashion house said.

The deal implies an enterprise value for Versace, whose signature Medusa head logo appears on its clothes and accessories, of €1 billion, the company said.

Versace said the family of founder Gianni Versace will remain at the heart of the company.

Gianni’s sister Donatella, brother Santo and niece Allegra have wholly owned the company since Gianni’s murder in 1997, with 20 per cent, 30 per cent and 50 per cent stakes respectively.

The brand reversed years of losses to make a return to profit in 2011, a turnaround that many partly attribute to chief executive Gian Giacomo Ferraris, a luxury industry veteran who took the helm in 2009.

Versace said it expected to see an 18 per cent rise in its 2013 revenues to nearly €480 million, while core earnings should increase by over 50 per cent to at least €69 million. The results are expected at the end of March.