Prada Eyes Versace Acquisition With €2.5 Billion Deal
Deal News | Apr 04, 2025 | Finance Community IT - 1 Corporate M&A
Prada, the esteemed Italian fashion giant listed on the Hong Kong Stock Exchange, is reportedly on the verge of securing a €2.5 billion financing package as details emerge about its planned acquisition of the iconic luxury brand Versace. Versace, known for its opulent and bold designs, has been under the ownership of Capri Holdings since 2018. Market sources indicate that this acquisition, if finalized, will deploy €1.5 billion towards the takeover itself, while the additional €1 billion is intended for reinvigorating Versace’s brand image and operations—dubbed 'the Medusa'. Renowned financial advisory firms Citi and Goldman Sachs are speculated to be assisting Prada in this transaction. Scuttlebutt about the acquisition has been gathering momentum over the past few months, with recent developments indicating tangible progress in negotiations. The funding arrangement is predicated on the successful completion of the takeover.
Sectors
- Fashion & Apparel
- Financial Services
Geography
- Italy – Prada is an Italian fashion company, and Versace, also Italian by origin, remains a significant cultural symbol.
- United States – Capri Holdings, the current owner of Versace, is an American company.
- Hong Kong – Relevant because Prada is listed on the Hong Kong Stock Exchange.
Industry
- Fashion & Apparel – The primary industry of interest in this transaction since both Prada and Versace operate in luxury fashion.
- Financial Services – Relevant due to the involvement of Citi and Goldman Sachs as financial advisors for the acquisition.
Financials
- €2.5 billion – Total financing Prada is reportedly obtaining to acquire Versace.
- €1.5 billion – Amount intended for the actual acquisition of Versace.
- €1 billion – Amount intended for revitalizing the Versace brand post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Prada | Bidding Company | Company | A major luxury fashion company based in Italy, seeking to acquire Versace. |
| Versace | Target company | Company | An iconic luxury fashion house currently owned by Capri Holdings. |
| Capri Holdings | Selling Company | Company | The current owner of Versace, an American fashion luxury group. |
| Citi | Financial Advisor | Company | Investment bank advising Prada on the potential acquisition. |
| Goldman Sachs | Financial Advisor | Company | Investment bank advising Prada on the potential acquisition. |