By Gwurld4026 
Prada’s €1.25 Billion Purchase of Versace Explained
Prada Group has announced its agreement to acquire Versace from Capri Holdings for €1.25 billion (approximately $1.38 billion), uniting two of Italy’s most iconic fashion brands.
Details of the Acquisition:
- Transaction Value: The deal is valued at €1.25 billion on a debt and cash-free basis.
- Financing: Prada will finance the acquisition through €1.5 billion in new debt, comprising a €1.0 billion term loan and a €0.5 billion bridge facility.
- Timeline: The transaction is expected to close in the second half of 2025, pending regulatory approvals.
Strategic Implications:
This acquisition marks a significant consolidation in the luxury fashion industry, bringing together Prada’s minimalist aesthetic with Versace’s bold designs. Prada aims to leverage Versace’s global recognition to enhance its position in the luxury market.
Leadership Changes:
Dario Vitale has been appointed as Versace’s new creative director, succeeding Donatella Versace, who will transition to the role of chief brand ambassador.
Market Context:
Capri Holdings acquired Versace in 2018 for $2.1 billion but faced challenges in positioning the brand within the evolving luxury market. The sale to Prada reflects a strategic shift, allowing Capri to focus on its core brands, including Michael Kors and Jimmy Choo.