According to the terms of the contract, Prada Group will take over 100 percent. Versace shares for the total value of an enterprise of EUR 1.25 billion ($ 1.375 billion) on a “gross, without debt and cash” basis.
Versace, founded in 1978 in Milan, is one of the leading international fashion brands, which is a symbol of Italian luxury around the world. The brand has deep roots in fashion history and has strong potential to adapt to contemporary trends and sense of moods of modern and future society.
“Thanks to its easily recognizable aesthetics, the brand is a perfectly complementary element in the Prada Group portfolio and has a significant, unrealized growth potential, using various value creation levers” – the company wrote in a statement.
- Branded residences on top. House from Lagerfeld, Versace apartment
Versace is to keep its DNA
As part of the Prada Group, Versace is to maintain its creative DNA and cultural authenticity, while using the group's full capabilities, including industrial abilities, retail sales and operational knowledge.
Patrizio Bertella, chairman and executive director of Prada Group, said: “We are delighted to welcome Versace in Prada Group and start a new chapter for the brand, with which we have a strong commitment to creativity, craftsmanship and heritage. Our goal is to continue the heritage of Versace, celebration and reinterpreting its brave and timeless aesthetics; investment and based on long -term relations.
Andrea Guerra, general director of the Prada Group, added: “Purchase Versace is another step in the evolutionary journey of our group, adding a new dimension, different and complementary. The group's infrastructure is strong, we dived the organizations of our brands and we strengthened our routines and processes. We feel ready to open this new chapter. Versace has great potential. Disciplined performance and patience.
- The Polish woman designs for a well -known company. Collection presented
Transaction details
The final amount of payment in cash will be determined at the time of the transaction finalization and will be subject to adaptations depending on the working capital and net financial position. The amount of the transaction also includes significant tax losses to transfer; In addition, Capri Holdings will cover some of the transaction costs.
The transaction will be financed with the amount of EUR 1.5 billion of a new debt, consisting of a terminal loan of EUR 1 billion and EUR 0.5 billion in a bridge loan. The group maintains considerable balance sheet flexibility, taking into account the cash balance and unpaid obligations.
The transaction was approved by the boards of both Prada SPA and Capri Holdings and is to be closed in the second half of 2025, provided that the standard closing conditions are met, including obtaining the required regulatory approvals.
