Prada has announced that it has entered into a definitive agreement to acquire 100 percent of Versace from Capri Holdings. The cash consideration will be based on an 1.25 billion-euro valuation and is subject to adjustment at closing.
“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. Our goal is to provide continuity to Versace’s legacy…Our organization is ready and well positioned to write a new page in the history of Versace, leveraging the Group’s values and continuing to operate with confidence and rigorous determination.” Patrizio Bertelli, chairman and chief executive officer of the Prada Group, said at the announcement of the Medusa brand, as reported by Ansa.
Within hours of the agreement, negotiations between the Prada Group and Versace seemed to have reached a stalemate, with a real risk that the deal might even fall through. According to a report in the Wall Street Journal, the odds of the deal going through were reportedly down to 50 percent, due to the instability in international markets and the tariff policies put in place by U.S. President Donald Trump, casting doubt over what appeared to be a certainty just a few weeks ago.
The recent appointment of former Miu Miu creative director Dario Vitale at the helm of Versace, replacing Donatella Versace, had meant that Prada had already set foot inside the maison founded by the latter’s brother, Gianni. The move was broadly seen as a strategic redefinition that could infuse a renewed creative energy within the maison.
Despite the uncertainty, inside sources indicated that Prada was granted exclusive access to Versace’s financial data in late February, resulting in an extended evaluation period. However, with the economic fluctuations of recent weeks, and the marked decline in sales in the luxury sector in general, the deal grew more complex.
Big names in the fashion industry like Ermenegildo Zegna have shown strong support for Prada, which has lent further credibility to the initiative, highlighting the trust placed in the brand’s leadership and in the managerial skills of Patrizio Bertelli, chairman of the group. The vote of confidence was not only symbolic, but sent a strong signal to investors and market participants.
The deal was brought to a successful conclusion thanks to the support of a banking consortium, led by Goldman Sachs, which had prepared a total financial package worth 2.5 billion euros. Of this amount, 1.5 billion was earmarked for the transaction to acquire Versace, while 1 billion will be used to relaunch the struggling brand.
The takeover deal would not be limited only to Versace. It appears that Jimmy Choo – the other brand in the current Capri Holdings group, along with Versace and Michael Kors – is included in the deal, bringing the total value of the transaction to around two billion euros.
