The fashion house Prada announced on Thursday the acquisition of 100% of Versace for 1.25 billion euros, as reported by the Italian brand in a statement, Efe informs.
As specified, the purchase of Versace, from Capri Holdings, will have a value of 1.25 billion euros and is subject to adjustments at the close of the transaction, the statement added.
"We are pleased to welcome Versace to the Prada Group and open a new chapter for a brand with which we share an unwavering commitment to creativity, product care, and a strong cultural heritage," explained the President and CEO of the Prada Group, Patrizio Bertelli.
Bertelli emphasized that Prada "is prepared and well positioned to write a new chapter in the history of Versace, leveraging the group's values and continuing with confidence and rigorous determination."
"Within the Prada group, Versace will maintain its creative DNA and cultural authenticity, benefiting at the same time from the strength of the group's platform, including industrial expertise and experience developed in retail and operational processes," the brand highlights in the statement.
Prada's interest in acquiring Versace led the brand last February to evaluate the state of its accounts to assess a purchase finally announced today.
Regarding the purchase agreement, Prada specified that the acquisition for 1.25 billion euros (about 1.375 billion dollars) is expected to be made "on a cash and debt-free basis".
Furthermore, "the final cash consideration will be determined at the close of the transaction, taking into account adjustments based on working capital and net financial position."
Also, "the indicated value includes a significant amount of tax losses that can be carried forward to the next fiscal year," and "Capri Holdings will finance certain costs related to the transaction."
Versace has experienced financial losses in recent times, amid a luxury fashion crisis that Prada has managed to navigate through.
The transaction was approved by the Boards of Directors of both Prada SpA and Capri Holdings, and the entire process is expected to be completed in the second half of 2025. It is subject to "usual closing conditions, including obtaining the required regulatory approvals," Prada concludes.