The iconic Italian fashion firm will invest 1.5 billion for purchasing Versace and Jimmy Choo for NYSE-listed Capri Holding and one billion in relaunching the business. Dondald Trump’s tariffs are delaying the closing
Hong-listed Italian iconic fashion firm Prada is holding talks with Goldman Sachs, Citi and other banks for raising a 2.5 billion euros that would finance the acquisition and relaunch of Versace, MFF-Milano Finanza Fashion reported. Barclays is assisting NYSE-listed Capri Holdings for such a sale.
Other Italian banks are also going to join the lenders pool (see here a previous post by BeBeez).
Capri Holding (fka Michael Kors) aims to sell Versace and shoe brand Jimmy Choo as part of a reorganization strategy that decided to implement after Tapestry decided not to carry on the 8.5 billion US Dollars acquisition of the company (press release) that announced in 2023 (see here a previous post by BeBeez).
Andrea Guerra, Prada ceo, aims to close the acquisition by the end of April 2025, but Donald Trump’s administration custom duties could delay the transaction (see here a previous post by BeBeez). Lorenzo Bertelli and Miuccia Prada own Prada.
In 2018, Capri Holding paid 1.83 billion euros for acquiring Versace (see here a previous post by BeBeez). Blackstone sold its 20% stake that acquired in 2014 for 210 million (see here a previous post by BeBeez).
In 4Q24, Versace generated an operative loss of 21 million US Dollars (press release). In 3Q24, Capri Holdings posted losses of 537 million US Dollars. The company also carried on write offs of 700 million (364 million for Versace) and other adjustments for Jimmy Choo, a brand that Prada may acquire. Capri’s debts is worth 3 billion that include financial liabilities of 1.5 billion.
On 1 April, Tuesday, Dario Vitale left Prada’s Miu Miu for replacing Donatella Versace, 69, as Versace creative director. WWD reported that Capri Holdings cfo Thomas Edwards is willing to move to Macy’s. Simeon Siegel, an analyst of BMO Capital Markets, explained that the manager joined Capri for creating a fashion catalyst, but such disposals are part of a radical strategy change.
Versace will now face a significant challenge to regain its market position and return to being a major player in the sector. An eventual deal with Prada has the potential to redefine the market balance.
