MILAN — After months of speculation, Prada finally confirmed it is acquiring 100 percent of Versace from Capri Holdings for 1.25 billion euros.
On Thursday, the day Prada‘s exclusive talks with Capri Holdings were set to end, the Italian luxury company publicly traded in Hong Kong said the deal is subject to adjustments at closing.
“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,” said Patrizio Bertelli, Prada Group chairman and executive director. “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 organization 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.”
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The transaction will be funded by 1.5 billion euros of new debt composed of 1 billion euros term-loan and 500 million euros bridge facility.
“The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary,” said Andrea Guerra, the group’s chief executive officer. “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.”
The transaction is expected to close in the second half of 2025, subject to customary closing conditions, including the receipt of required regulatory approvals.
Up until last week, the company was rumored to be on its way to pay 1.5 billion euros for both Versace and Jimmy Choo.
In March, Donatella Versace was named chief brand ambassador of the fashion house she has helped grow on her own for the past 28 years, following the death of her brother Gianni.
Effective April 1, the designer was succeeded by Miu Miu alum Dario Vitale, named chief creative officer.
In 2018, Donatella Versace reached a $2.1 billion deal to sell her family’s company to Michael Kors Holdings, which subsequently changed its name to Capri Holdings. Sources said Prada Group was in exclusive due diligence with Capri about buying both Jimmy Choo and Versace. Prada could in turn flip Jimmy Choo to another buyer to focus on Versace. Neither Capri nor Prada has acknowledged the process.
Prada was one of the early bidders on the scene after Capri Holdings tapped Barclays to sell the brands, according to sources who have been following the process. In February, Prada surged to the front of the pack and entered into exclusive talks with Capri.