Prada Acquires Versace From Capri Holdings In $1.4B Deal

Italian luxury fashion house Prada has agreed to acquire a 100% stake in Versace from Capri Holdings (CPRI) for €1.25 billion ($1.375 billion) on a debt and cash free basis.

Versace is a leading international fashion design house. Prada believes the brand constitutes a strongly complementary addition to its portfolio and displays significant untapped growth potential, leveraging multiple value creation levers.

Prada said the transaction will be funded by €1.5 billion of new debt composed of €1.0 billion term loan and €0.5 billion bridge facility. The group said it retains significant balance sheet flexibility, considering the cash balance and undrawn committed facilities.

The transaction is expected to close over the course of the second half of 2025.

Following the deal announcement, Capri Holdings shares tumbled more than 10% on Thursday morning.

Prada Group CEO Andrea Guerra said the group’s infrastructure is strong and the company has verticalised its brands’ organisations and reinforced its 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,” he said. “Notwithstanding the sector uncertainties, we look at the future with confidence, focused on a long-term strategic vision.”

Citigroup Global Markets Europe AG and Goldman Sachs Bank Europe SE, Succursale Italia serve as financial advisors.

Skadden, Arps, Slate, Meagher & Flom LLP serve as Prada Group's legal counsel for the transaction.

Capri stock has lost over 29% in 2025 and over 65% in the past 12 months.

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Exchange Rate: €1 = $1.098<