Prada has completed its acquisition of Versace from Capri Holdings after securing all required regulatory approvals, the company said in a statement.
Capri Holdings confirmed the transaction, noting that Versace was sold for US$1.375 billion in cash, subject to adjustments. Capri said the proceeds will be used to repay most of its debt to strengthen its balance sheet.
John D. Idol, chairman and chief executive officer of Capri Holdings, said the move will reduce the group’s leverage ratio and give it more financial flexibility to invest in growth and return capital to shareholders.
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He added that Capri remains focused on driving its strategic plans across Michael Kors and Jimmy Choo as it aims to stabilise the business this year and build toward a return to growth in fiscal 2027. Idol also thanked the Versace team for its contributions, singling out Donatella Versace, Dario Vitale and Emmanuel Gintzburger for their leadership.
“I wish the Versace team continued success in the future, and believe Prada is the ideal partner to guide this celebrated luxury house into its next era of growth,” he added.
Capri had first unveiled the sale in April this year. At the time, Idol had said then that Versace had been repositioned to emphasise its luxury heritage and craftsmanship, and that Capri viewed the deal as part of its wider plan to strengthen its balance sheet while supporting the long-term growth of Michael Kors and Jimmy Choo.
MARKETING-INTERACTIVE has reached out to Prada for more information.
The Prada–Versace deal also lands amid a wave of high-value acquisitions reshaping the consumer landscape. In July, Ferrero added to the momentum with a US$3.1 billion agreement to acquire WK Kellogg Co, the maker of Frosted Flakes, Froot Loops and Special K. The move broadens Ferrero’s North American portfolio into new consumption occasions and reinforces its strategy of acquiring and scaling iconic brands across the region.
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