Patrizio Bertelli’s iconic fashion firm received 1.5 billion euros from BNP Paribas and Intesa Sanpaolo for purchasing the asset that the NYSE listed vendor paid in the region of 1.83 billion in 2018
On 10 April, Thursday, Hong Kong-listed Prada said it signed a final agreement for acquiring Italian iconic fashion house Versace from NYSE-listed Capri Holdings (fka Michael Kors) (Prada, and Capri statements) for a cash and debt-free enterprise value of 1.25 billion euros (1.375 billion US Dollars),
The vendor purchased the asset in 2018 for 1.83 billion euros, minus 31.69% of the amount it fetched with this sale (see here a previous post by BeBeez). BeBeez quoted media reports about the negotiations for this deal in February 2024, March 2025 and April 2025 saying that the deal value was of 1.5 billion.
Prada and Capri will agree on the final cash payment for Versace at the closing that may take place in 2H25 upon the approval of regulatory authorities.
Prada said that the transaction value includes a relevant amount of tax losses. Capri Holdings will finance part of the transaction costs for which the buyer received from BNP Paribas and Intesa SanPaolo a term-loan of one billion and a 500 million bridge facility. Prada received assistance from Citigroup, Goldman Sachs and Skadden, Arps, Slate, Meagher & Flom and said that said that such a deal will not have a relevant impact on its financial health. Capri Holdings retained Wachtell, Lipton, Rosen & Katz and Barclays.
Gianni Versace founded Versace in 1978. Santo Versace acted as chairman and ceo of the company from its birth until 2004. On 1 April, Tuesday, Dario Vitale left Prada’s brand Miu Miu for replacing Donatella Versace as Versace’s creative director (see ahere a previous post by BeBeez).
The distinctive feature of international fashion house Versace is a strong proprietary aesthetics on which lies its brand awareness to which photographers like Richard Avedon, Helmut Newton, Bruce Weber, Steven Meisel, and Herb Ritts also contributed.
Lorenzo Bertelli, Prada chief Marketing officer and head of Corporate Social Responsibility, said: “We acquired a brand with enormous potential, a strong heritage and a recognisable aesthetic. We see no risk of overlap with our Prada and Miu Miu brands, nor of cannibalisation between the customers of the respective firms”.
Prada said it will allow Versace to keep its creative DNA and cultural identity, but it didn’t disclose details about governance changes for the target.
Prada’s cfo Andrea Bonini explained that “Given the guidelines that Capri Holding provided, for the 2025 fiscal year we expect Versace to post a turnover of 724 million (810 million US Dollars), and a single-digit negative ebit. Versace generates 42% of its sales in the Emea region, 31% in America and 27% in Asia-Pacific, while the retail channel accounts for 73% (see here the deal presentation).
John D. Idol, Capri Holding chairman and ceo, explained: “Over the past six years, we made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship through product, marketing and shop improvements. The brand is now in a good position for long-term sustainable growth.”
Patrizio Bertelli, Prada chairman, said: “We are delighted to welcome Versace into the Prada Group and to start a new chapter for a brand with which we share an unwavering commitment to creativity, product care and a strong cultural heritage. We aim to give continuity to the legacy of Versace while celebrating and reinterpreting its bold and timeless aesthetics. We will offer a solid platform, strengthened over the years by continuous industrial and distribution investments’.
Andrea Guerra, Prada ceo, said: “The acquisition of Versace grants Prada with further step for its evolution and adds a new synergic dimension. Our infrastructure is solid and we verticalised our brand organisations while strengthening our routines and processes. Versace’s potential is huge but the execution of this deal will require time, patience and discipline. The evolution of a brand needs time and ongoing care. Despite the period of great uncertainty, we look to the future with confidence, projected on a long-term strategic vision.“
After such a transaction, Prada turnover will be in the region of 6.3 billion (Versace contribution amounts to 13%).
