Prada completes Versace acquisition

The Italy-based luxury group has completed its acquisition of Versace from Capri Holdings for approximately 1.3 billion euros. The deal was announced in April
In April, Prada signed a definitive agreement to buy Versace, after Capri’s sale to Tapestry was cancelled due to a challenge by antitrust regulators. Founded by Gianni Versace in Milan in 1978, the brand will join the group’s two main labels: Prada, the namesake brand, and Miu Miu, which is smaller but growing quickly.
According to Reuters, Lorenzo Bertelli — the son of Prada owners Miuccia Prada and Patrizio Bertelli — is set to become the executive chairman of the luxury brand that Prada has coveted for years. “There had already been contacts during the COVID period, there were talks even before Capri’s sale to Tapestry. When that deal fell through over antitrust issues, we came back and tried to speed things up”, he told Reuters.
With regard to Capri Holdings. John D. Idol, the company’s Chairman and Chief Executive Officer, said they plan to use the proceeds to repay most of their debt, “which will substantially strengthen our balance sheet. As a result, this transaction will significantly reduce our leverage ratio and provide greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future”.
The US-based group is now focused on maximising the potential of its Michael Kors and Jimmy Choo brands in order to achieve growth again by 2027.
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