Capri Holdings Sells Versace to Prada for $1.375B

By Bobby Samwell • Thursday, April 10 15:16 • Permanent Link

Capri Holdings Limited (NYSE:CPRI) has recently announced a significant development in the fashion luxury industry. The company has entered into a definitive agreement to sell Versace to Prada S.p.A. (HKSE:1913) for a substantial amount of $1.375 billion in cash, subject to certain adjustments. This transaction is anticipated to close in the latter half of the calendar year 2025, pending customary closing conditions and regulatory approvals.

Under the leadership of John D. Idol, Chairman and CEO of Capri Holdings, Versace has undergone a transformative journey over the last six years. This period has seen a concerted effort to reposition the brand, focusing on its luxury heritage and exceptional craftsmanship. The result of these efforts has placed Versace in a strong position for sustainable, long-term growth.

The sale of Versace is expected to yield multiple benefits for Capri Holdings. It is anticipated to fortify the company's balance sheet, allowing for accelerated strategic investments in Michael Kors, and ultimately increasing shareholder value. The proceeds from this transaction are earmarked to support Capri Holdings' capital allocation priorities, including business investments, debt reduction, and future share repurchases.

Barclays is providing financial advisory services to Capri Holdings, while Wachtell, Lipton, Rosen & Katz is serving as its legal advisor in this transformative transaction.

Capri Holdings Limited, a global fashion luxury group, comprises iconic brands such as Versace, Jimmy Choo, and Michael Kors. Each brand within the portfolio is renowned for its commitment to glamorous style and craftsmanship, catering to a diverse array of fashion luxury categories.

Versace, founded in Milan in 1978, is synonymous with Italian glamour and style. The brand has consistently set the bar for iconic fashion moments and innovative design, expanding globally from its roots in haute couture to encompass ready-to-wear, accessories, footwear, eyewear, watches, jewelry, fragrance, and home furnishings.

This development marks a strategic shift for Capri Holdings, reflecting its commitment to enhancing shareholder value, strengthening its balance sheet, and fostering the future growth of its remaining brands, Michael Kors and Jimmy Choo. The market has reacted to these announcements by moving the company's shares -10.9% to a price of $14.58. For more information, read the company's full 8-K submission here.

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