Capri's Stock Surges Amid Prada's Interest in Versace Acquisition
Deal News | Jan 10, 2025 | EIN
Capri Holdings Ltd is experiencing a surge in stock prices as fashion giant Prada is reportedly considering acquiring Versace, a renowned luxury brand under the Capri umbrella. This potential acquisition comes amid the dissolution of Capri's previous merger agreement with Tapestry Inc., following a lawsuit from the Federal Trade Commission. As part of its strategic shift, Capri is in the process of finding potential buyers for its Versace and Jimmy Choo brands, creating a data room of confidential information to attract interest before the holiday season. Meanwhile, Capri's second-quarter FY25 revenue fell significantly, specifically with Versace experiencing a 28.2% decline, attributed to a global downturn in luxury fashion demand. Prada is collaborating with Citigroup to evaluate the feasibility of the acquisition.
Sectors
- Fashion & Luxury Goods
- Mergers & Acquisitions
Geography
- United States – Capri Holdings, the parent company of Versace, operates out of the United States.
- Italy – Prada, an Italian luxury brand interested in acquiring Versace, is based in Italy.
Industry
- Fashion & Luxury Goods – The article revolves around leading fashion brands like Versace, indicative of the luxury end of the fashion industry.
- Mergers & Acquisitions – There is ongoing M&A activity involving potential acquisition exploration for fashion brands like Versace.
Financials
- $8.5 billion – The value of the halted acquisition of Capri by Tapestry Inc.
- 16.4% decline – The reported fall in Capri's second-quarter FY25 revenue.
- 28.2% decline – The decrease in Versace's revenue as reported by Capri.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Capri Holdings Ltd | Target | Company | A fashion holding company considering selling its brands Versace and Jimmy Choo. |
| Prada | Potential Buyer | Company | An Italian luxury fashion brand exploring an acquisition of Versace. |
| Versace | Target Brand | Company | A renowned luxury fashion brand owned by Capri Holdings and currently up for sale. |
| Jimmy Choo | Potential Divestment | Company | Another fashion brand under Capri Holdings put up for exploration of potential buyers. |
| Citigroup Inc | Financial Advisor | Company | Financial institution assisting Prada in assessing the acquisition of Versace. |
| Federal Trade Commission | Regulator | Government | U.S regulatory body that filed a lawsuit to block the merger of Capri and Tapestry. |
| Tapestry Inc. | Previous Buyer | Company | Company that was set to merge with Capri Holdings before mutual dissolution of the agreement. |