Capri Holdings has sold the Versace brand to the Prada Group for €1.25 billion ($1.375 billion) in cash, subject to certain adjustments. The transaction — which has been approved by the boards of both companies — is expected to close in the second half of 2025, subject to customary closing conditions including regulatory approvals.
Capri, Tapestry Realign Following Failed Merger
Since ending its planned merger with fellow American luxury house Tapestry in November 2024 following regulatory pushback, Capri has struggled. The company recorded double-digit declines during the recent holiday period at its biggest brands, Versace and Michael Kors. Capri plans to use the cash infusion from the sale of Versace to strengthen its balance sheet and invest in growing Michael Kors.
“This transaction reflects our commitment to increase shareholder value, strengthen our balance sheet and power the future growth of Michael Kors and Jimmy Choo,” said Capri Chairman and CEO John Idol in a statement.
Tapestry also has looked to streamline its slate of brands following the failed Capri merger with the sale of the Stuart Weitzman brand to Caleres.
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Prada Sets Out to Relaunch Versace with New Creative Director at the Helm
Since being acquired by Capri in 2018, Versace has struggled to keep up with other heritage luxury brands, but Prada Group Chairman and Executive Director Patrizio Bertelli said in a statement that the company plans to “write a new page in Versace’s history.” Following the acquisition, Versace will operate as a separate entity within Prada Group, maintaining “its creative DNA and cultural authenticity” while leveraging the consolidated platform for industrial capabilities, retail execution and operational expertise.
Describing the brand as the “epitome of Italian luxury,” Prada has borrowed an additional €250 million (approximately $278.5 million) to relaunch Versace, according to The Business of Fashion. Last month, Donatella Versace ceded the reins of the company she helped build after nearly 30 years as Creative Director. She was replaced by Dario Vitale, a former design director for Miu Miu, a Prada Group brand.
“The acquisition of Versace marks another step in the evolutionary journey of our group, adding a new dimension, different and complementary,” said Andrea Guerra, CEO of Prada Group in a statement. “The group’s infrastructure is strong, we have verticalized our brands’ organizations and reinforced our routines and processes. We feel ready to open this new chapter. Versace has huge potential. The journey will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus. Notwithstanding the sector uncertainties, we look at the future with confidence, focused on a long-term strategic vision.”
