“The acquisition of Versace is adding a new dimension that is different and complementary,” says Andrea Guerra, Prada Group’s CEO.
Capri Holdings Limited has entered into a definitive agreement to sell Versace to Prada SpA for $1.375 billion (€1.25bn) on a debt and cash free basis. The transaction is expected to close in the second half of 2025.
The London-based group expects the sale of Versace to strengthen its balance sheet, enable it to make accelerated strategic investments in Michael Kors and increase shareholder value. The proceeds of the transaction will be used for investments, debt reduction and share repurchases, Capri noted.
Prada added that the transaction will be funded by €1.5 billion of new debt, composed of a €1.0 billion term loan and a €0.5 billion bridge facility. The Italian fashion group said that it ”retains significant balance sheet flexibility considering the cash balance and undrawn committed facilities.”
“Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace. Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship. Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success,” said John Idol, Capri’s Chairman and Chief Executive Officer.
“This transaction reflects our commitment to increase shareholder value, strengthen our balance sheet, and power the future growth of Michael Kors and Jimmy Choo. We will continue to execute on the strategic initiatives shared at our recent Investor Day and remain confident in the long-term growth potential of Michael Kors and Jimmy Choo,” he added.
“The acquisition of Versace marks another step in our group’s evolutionary journey, adding a new dimension that is different and complementary,” said Andrea Guerra, Prada Group’s CEO. “The group’s infrastructure is strong, we have verticalised our brands’ organisations and reinforced our routines and processes. We feel ready to open this new chapter. Versace has huge potential. The journey will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus. I would like to thank Capri Holdings for having preserved and enhanced the heritage of this wonderful brand. Notwithstanding the sector uncertainties, we look at the future with confidence, focused on a long-term strategic vision,” said Andrea Guerra, Prada Group’s CEO.
”Within the Prada Group, Versace will maintain its creative DNA and cultural authenticity, while benefitting from the full strength of the group’s consolidated platform, including industrial capabilities, retail execution and operational expertise,” the Prada Group added.
