Overview

• Prada is in advanced discussions to purchase Versace from Capri Holdings for approximately €1.5 billion, with a deal expected to close in March if finalized.
• The acquisition would bring Versace back under Italian ownership and bolster Prada’s position against competitors like France’s LVMH.
• Versace has faced declining revenues, with a 15% drop reported for the final quarter of 2024, and is projected to break even financially next year.
• Capri Holdings, which acquired Versace in 2018 for €1.85 billion including debt, has been seeking to sell after calling off a merger with Tapestry in 2024 due to antitrust challenges.
• Prada, led by Miuccia Prada, has conducted initial due diligence on Versace and sees the bold Versace brand as complementary to its more understated offerings.