Prada Group to Acquire Versace in a $1.375 Billion Cash Deal – Arabian Business: Latest News on the Middle East, Real Estate, Finance, and More
In one of the biggest deals of the year in the fashion industry, Prada said that it has entered into a definitive agreement to acquire 100 per cent of Versace from Capri Holdings.
Prada agreed to an all-cash deal, based on an Enterprise Value of €1.25 billion ($1.375 billion), after days of delay. The Wall Street Journal reported it was due to uncertainty in the stock markets.
The transaction is expected to close in the second half of 2025.
Versace, founded in 1978 in Milan, is one of the leading international fashion design houses and enjoys a distinctive brand identity in the luxury landscape.
Prada deal secures Versace
In a statement released Thursday, the Prada Group said 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.
Patrizio Bertelli, Prada Group Chairman and Executive Director, commented: “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 by 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.”
The market reacted positively to the news for both Capri Holdings and the Prada Group. Capri Holdings jumped 31.09 per cent to US$16.36 on the New York Stock Exchange, while Prada was up 4.93 per cent to HK$47.85 on the Hong Kong Stock Exchange.
John D Idol, Capri Holding’s Chairman and Chief Executive Officer, added: “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.”
The sale of Versace is expected to deliver a number of benefits, including strengthening Capri Holdings’ balance sheet, reducing debt, and enabling it to make accelerated strategic investments in Michael Kors and Jimmy Choo.