Prada announced that it has entered into a definitive agreement to acquire 100% of Versace from Capri Holdings in cash consideration, based on an Enterprise Value of €1.25 billion (US$1.375 billion). The deal is subject to adjustments at closing.
Originally founded in 1978 in Milan, Versace is one of the leading international fashion design houses and symbolizes of Italian luxury worldwide. Versace brings a strongly complementary addition to the Prada Group’s portfolio and displays significant growth potential leveraging multiple value creation levers.
Within Prada, Versace will maintain its creative cultural authenticity while benefiting from the full strength of the group’s consolidated platform, including industrial capabilities, retail execution, and operational expertise.
The deal will be funded by €1.5 billion of new debt, comprising a €1 billion term loan and a €0.5 billion bridge facility. And the group retains significant balance sheet flexibility, considering the cash balance and undrawn committed facilities.
The deal has been approved by Prada and Capri Holdings’ Boards of Directors. It is expected to close in the second half of 2025, subject to customary closing conditions, including the receipt of required regulatory approvals.
Advisors: Citigroup Global Markets Europe and Goldman Sachs Bank Europe, Succursale Italia are serving as financial advisors and Skadden, Arps, Slate, Meagher & Flom is serving as legal counsel to Prada Group. BNP Paribas and Intesa acted as underwriting banks of the financing.
KEY QUOTES:
“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, craftmanship and heritage. We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships. Our organisation is ready and well positioned to write a new page in Versace’s history, drawing on the Group’s values while continuing to execute with confidence and rigorous focus.”
- Patrizio Bertelli, Prada Group Chairman and Executive Director
“The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary. 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.”
- Andrea Guerra, Group Chief Executive Officer
