Capri confirms sale of Versace to Prada Group
US-based fashion conglomerate Capri Holdings Limited has entered into a definitive agreement to sell Versace to Prada Group for $1.375 billion (£1.06 billion) in cash.
The transaction is expected to close in the second half of 2025, subject to regulatory approvals. By acquiring Gianni Versace's legacy brand, Prada will create a larger Italian player to compete with the likes of LVMH and Kering.
John D. Idol, Capri's Chairman and Chief Executive Officer, said: "Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace. Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship.
"Through elevated product, marketing and store enhancements, the brand is now well-positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success."
Capri, which bought Versace in 2018 for about €1.8 billion (£1.49 billion), said the sale of Versace will strengthen its balance sheet and allow it to make "accelerated strategic investments in Michael Kors".
In a webcast this afternoon, Prada Group's CMO Lorenzo Bertelli, said: "We believe scaling Versace is going to be a big job, but it's something we are already prepared to do. The potential is huge. We have the knowledge and information to make this brand successful in the long run. We're excited to evolve the brand."
Prada Group, which owns Prada and Miu Miu, has defied the luxury downturn in recent months. For the third quarter of 2024, it reported a 15% increase in net revenue, bucking the luxury slowdown trend that has hit LVMH and Kering.
Capri, however, was hit by the luxury slump. Revenues were down by 16.4% to $1.08 billion (£830 million) in the second quarter of Fiscal 2025.
Back in 2023, Tapestry Inc. announced it would acquire rival Capri in a deal valued at $8.5 billion (£6.6 billion). This deal would have married America's two largest luxury houses. Fast forward to 2024: a federal judge blocked the merger following a court order. As a result, Capri hired Barclays Plc to explore options for Versace and Jimmy Choo.
This news comes as Donatella Versace is handing the Creative Director reins to Dario Vitale. During the webcast, Prada said it had no input in choosing the new Creative Director, but they're confident he will successfully lead the brand's new chapter.
As of 1 April, Donatella Versace is dedicating herself to the support of Versace’s philanthropic and charitable endeavours in her new role as Chief Brand Ambassador.
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