Prada S.p.A. has announced the successful completion of the acquisition of Versace from Capri Holdings, following receipt of all required regulatory clearances.
Capri Holdings Limited mentioned that it completed the previously announced sale of Versace to Prada S.p.A. for $1.375 billion in cash, subject to specific adjustments.
"With the successful completion of the sale of Versace, we plan to use the proceeds to repay the majority of our debt, which will substantially strengthen our balance sheet,” said John D. Idol, the Company's Chairman and Chief Executive Officer.
“As a result, this transaction will significantly reduce our leverage ratio and provide greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future.”
Idol said the company will remain focused on executing its strategic initiatives across Michael Kors and Jimmy Choo to maximise the potential of its iconic brands.
“Looking ahead, we believe we are on track to stabilise our business this year while establishing a solid foundation for a return to growth in fiscal 2027."
He also expressed his gratitude to the entire Versace team for their dedication and contributions.
“In particular, I would like to recognise Donatella Versace, Dario Vitale and Emmanuel Gintzburger for their outstanding leadership and commitment to the brand's evolution. I wish the Versace team continued success in the future, and believe Prada is the ideal partner to guide this celebrated luxury house into its next era of growth."
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