Prada S.p.A. (1913:HK) has received approval from the European Commission to acquire 100% of Versace from Capri Holdings (NYSE:CPRI), marking a significant expansion of the Prada Group’s luxury portfolio.
The acquisition, valued at an enterprise value of €1.25 billion ($1.375 billion), is expected to close in the second half of 2025, subject to customary conditions, including final regulatory approvals. The transaction will be financed through €1.5 billion of new debt, comprising a €1.0 billion term loan and a €0.5 billion bridge facility, while maintaining the Group’s balance sheet flexibility.
Versace, founded in Milan in 1978, is recognized worldwide for its bold aesthetic and Italian luxury heritage. The brand will retain its creative DNA and cultural authenticity while leveraging Prada Group’s industrial capabilities, retail operations, and operational expertise.
Patrizio Bertelli, Prada Group Chairman and Executive Director, stated:
“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship, and heritage. Our organisation is ready and well positioned to write a new page in Versace’s history.”
Andrea Guerra, Group Chief Executive Officer, added:
“The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a complementary dimension to our portfolio. The journey will require disciplined execution and patience, but we look at the future with confidence.”
The European Commission approved the transaction under the EU Merger Regulation, concluding that it does not raise competition concerns due to the companies’ limited market positions. The approval was granted through the simplified merger review procedure. The transaction relates primarily to the design, manufacturing, and distribution of luxury goods.
More information on the EU approval can be found in the Commission’s public case register under case number M.11995.
