Italian fashion house signs definitive agreement with Capri Holdings, marking a major consolidation in the global luxury sector
Italian luxury conglomerate Prada S.p.A. has signed a definitive agreement to acquire 100 per cent ownership of iconic fashion brand Versace from Capri Holdings. The all-cash deal is valued at an enterprise value of USD 1.373 billion and was announced on 10 April 2025.
The transaction is expected to be completed in the second half of 2025, subject to customary regulatory approvals and closing conditions. The final consideration will be adjusted based on Versace’s net working capital and net financial position. Capri Holdings will also cover certain transaction-related costs. Executed on a debt- and cash-free basis, the deal includes the transfer of significant tax loss carryforwards.
To finance the acquisition, Prada will raise approximately USD 1.647 billion in new debt, comprising a USD 1.098 billion term loan and a USD 549 million bridge facility. The group maintains that it retains financial flexibility due to its existing cash reserves and access to undrawn committed credit lines. The boards of both Prada S.p.A. and Capri Holdings have approved the transaction.
Founded in 1978, Versace is internationally renowned for its bold and distinctive design language. Under Prada’s ownership, the brand will continue to uphold its creative and cultural identity while leveraging the Prada Group’s extensive industrial and retail infrastructure. Versace will retain its unique positioning within the luxury market.
The acquisition forms part of Prada’s strategic objective to grow its luxury brand portfolio by acquiring complementary assets. The company’s leadership underscored that the integration of Versace will follow a disciplined, long-term approach aimed at sustainable brand evolution and market expansion.
Citigroup Global Markets Europe AG and Goldman Sachs Bank Europe SE acted as financial advisors to Prada Group, with legal counsel provided by Skadden, Arps, Slate, Meagher & Flom LLP. BNP Paribas and Intesa served as underwriting banks for the financing arrangement.
This move adds momentum to the ongoing wave of consolidation in the global luxury fashion industry and significantly strengthens Prada Group’s international market footprint.
