Prada Expands with Versace Acquisition from Capri Holdings
Deal News | Apr 10, 2025 | Legal Community Italy
Prada has entered into a definitive agreement to acquire 100% of Versace from Capri Holdings at an Enterprise Value of €1.25 billion. This acquisition is set on a cash-free, debt-free basis, and the final cash consideration will adhere to adjustments upon closing, involving working capital and net financial adjustments. Legal firm Skadden is acting as Prada’s primary legal advisor, while BonelliErede is providing comprehensive support on Italian legal and financing aspects. Clifford Chance is engaged for Italian tax matters, while PwC TLS handles tax due diligence. The transaction includes a notable factor of carry-forward tax losses and expects financing by Capri Holdings for certain operation-related expenses. Additionally, Prada has secured a new €1.5 billion financing agreement. Versace is to maintain its creative identity under Prada’s platform, with the acquisition projected to conclude in the second half of 2025, pending regulatory approvals.
Sectors
- Fashion & Apparel
- Legal Services
- Financial Advisory
Geography
- Italy – Prada is an Italian luxury brand, and much of the legal and financial advisory services are being conducted by Italian firms or regional offices.
- Middle East – BonelliErede’s Dubai office involvement suggests that certain aspects of the operation concerning Versace's activities are linked to the Middle East.
Industry
- Fashion & Apparel – This sector involves the design, production, and marketing of clothing and accessories, crucial to companies like Prada and Versace.
- Legal Services – Law firms such as Skadden, BonelliErede, and Clifford Chance play a vital role in advising and structuring legal aspects of mergers and acquisitions.
- Financial Advisory – Involves firms like PwC TLS offering financial due diligence and tax advice, crucial for the transaction process.
Financials
- €1.25 billion – The Enterprise Value (EV) price set for the acquisition of Versace by Prada from Capri Holdings.
- €1.5 billion – The amount of new financing Prada has secured, consisting of a €1 billion term-loan and a €0.5 billion bridge facility.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Prada | Bidding Company | Company | A leading Italian luxury fashion house seeking to expand its portfolio by acquiring Versace. |
| Versace | Target Company | Company | An iconic Italian luxury fashion company, currently owned by Capri Holdings. |
| Capri Holdings | Selling Company | Company | A global fashion holding company, selling its stake in Versace to Prada. |
| Skadden, Arps, Slate, Meagher & Flom LLP | Legal Advisor | Company | An international law firm providing legal counsel to Prada for this acquisition. |
| BonelliErede | Legal and Financing Advisor | Company | Assisting Prada with Italian law and financing matters for the transaction. |
| Clifford Chance | Tax Advisor | Company | Providing tax-related advice and services on the Italian side of the transaction. |
| PwC TLS | Tax Due Diligence Advisor | Company | Handling the tax due diligence aspects of the acquisition for Prada. |
| Orsingher Ortu | Legal Advisor for Sellers | Company | Reportedly advising the sellers in the transaction. |