The acquisition will be financed by the issuance of 1.5 billion euros in debt by Prada Group. The transaction is scheduled to be completed in the second half of 2025.
On April 10, the Italian company Prada Group announced that it had completed an agreement to acquire 100% of the Versace fashion house for $1.37 billion (1.25 billion euros).
An agreement has been reached with the American company Capri Holdings to acquire the premium clothing and accessories manufacturer.
Prada is financing the acquisition of the Versace brand by issuing 1.5 billion euros in debt.
These obligations include:
- 1 billion euro term loan
- 500 million euro bridge loan
The deal was approved by the boards of directors of Prada and Capri Holdings. It is planned to be completed in the second half of 2025, subject to approval from the relevant regulatory authorities.
BBC News Russkaya Shubba, citing insiders, wrote that the initial amount of the deal was agreed at $1.6 billion.
However, after US President Donald Trump imposed tariffs that could hurt Versace’s business, the price was revised.
So:
- Capri bought the brand from the Versace family in 2018 for 1.83 billion euros.
- Now it was forced to sell at a lower price.
There was also a risk that the deal would not go through:
- The initially high amount requested for Versace ($3 billion)
- Instability in the stock markets
- A drop in the value of Capri shares could have caused this.
According to Kommersant, in January it became known that Prada Group was interested in buying Versace.
Capri Holdings in the US had abandoned its plan to merge with another holding company specializing in luxury goods, Tapestry, in 2023.
- Although the deal was valued at $8.5 billion, the court stopped it.
