Prada Acquires Versace in $1.25 Billion Deal
Deal News | Apr 10, 2025 | Finance Community IT - 1 Corporate M&A
Prada has made a significant move in the luxury fashion industry by acquiring 100% of Versace from Capri Holdings for €1.25 billion. This acquisition is based on a cash-free, debt-free agreement with the final cash consideration to be adjusted at closing, considering working capital and net financial position. The acquisition also entails a notable value of carried-forward tax losses, with Capri Holdings financing certain transaction-related costs. To facilitate the acquisition, Prada has secured new financing worth €1.5 billion, comprising a €1 billion term-loan and a €0.5 billion bridge facility, ensuring a flexible financial structure. The transaction is expected to close in the second half of 2025. The transaction has been strategically advised and managed by several firms, with Citigroup Global Markets Europe AG and Goldman Sachs Bank Europe SE acting as financial advisors. Skadden, Arps, Slate, Meagher & Flom LLP served as Prada's legal advisors, and PwC conducted a comprehensive financial due diligence. PwC TLS provided tax due diligence, while Barclays advised Capri Holdings. This acquisition is intended to harness Versace's strong brand identity and potential growth under Prada’s management while maintaining Versace’s creative and cultural authenticity.
Sectors
- Luxury Fashion
- Corporate Finance
- Legal Advisory
Geography
- Italy – Both Prada and Versace are prominent Italian fashion houses, making Italy a significant geographic focus of the transaction.
Industry
- Luxury Fashion – The acquisition of Versace, a major luxury fashion brand, by Prada, highlights the dynamics within the luxury goods sector.
- Corporate Finance – Involves extensive financial strategizing and structuring, as evidenced by the term-loan and bridge facility utilized by Prada for the acquisition.
- Legal Advisory – Important legal advisory roles were played by firms like Skadden, Arps, Slate, Meagher & Flom LLP, reflecting the legal complexities of high-value acquisitions.
Financials
- €1.25 billion – Value of the acquisition deal for 100% of Versace.
- €1.5 billion – Total new financing secured by Prada, including a term-loan and bridge facility.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Prada | Bidding Company | Company | A leading luxury fashion brand acquiring Versace. |
| Versace | Target Company | Company | An iconic Italian fashion brand being acquired by Prada. |
| Capri Holdings | Selling Company | Company | The company selling Versace to Prada. |
| Citigroup Global Markets Europe AG | Financial Advisor | Company | Provided financial advisory services for the acquisition. |
| Goldman Sachs Bank Europe SE | Financial Advisor | Company | Provided financial advisory services for the acquisition. |
| Skadden, Arps, Slate, Meagher & Flom LLP | Legal Advisor | Company | Provided legal advisory services to Prada. |
| PwC | Due Diligence | Company | Conducted financial, tax, and HR due diligence for Prada. |
| Barclays | Advisor | Company | Advised Capri Holdings on the transaction. |
| BNP Paribas | Financing Institution | Company | Provided financing for the acquisition. |
| Intesa Sanpaolo | Financing Institution | Company | Provided financing for the acquisition. |