Michael Kors parent sells Versace to Prada in $1 billion-plus deal
Capri Holdings Ltd. has entered into the biggest luxury deal of the year — one that will create a new fashion powerhouse that's not based in France.
In a move that will unite the two of the biggest brands in Italian fashion, the parent company of Michael Kors, Versace and Jimmy Choo has entered into an agreement to sell Versace to the Prada Group for $1.375 billion in cash, subject to certain adjustments. The transaction is expected to close in the second half of calendar 2025.
The deal comes after the collapse of Tapestry’s planned $8.5 billion acquisition of Capri Holdings due to legal hurdles.
“This transaction reflects our commitment to increase shareholder value, strengthen our balance sheet and power the future growth of Michael Kors and Jimmy Choo,” said Capri CEO and chairman John Idol. “We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”
In 2018, Donatella Versace (and Blackstone) sold her family’s company to Michael Kors Holdings (which subsequently changed its name to Capri Holdings) in a $2.1 billion deal. Donatella took over the company along with her brother Santo Versace following the murder of their sibling, the designer Gianni Versace in 1997.
Capri said during the past six years, it had made tremendous progress in repositioning the Versace brand to place greater emphasis on its luxury heritage and exceptional craftsmanship, and it is now “well positioned” for sustainable long-term growth.
In a press release, Prada said that Versace will retain its creative DNA and authenticity within the Prada Group, which, in addition to its namesake brand, includes Miu Miu, Luna Rossa, Car Shoe and Church’s.
“We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic," said Prada chairman Patrizio Bertelli. “At the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships."
While Prada and Versace are both luxury brands, their approach to fashion is radically different. Prada is known for its lean, minimalist style, while Versace is famous for its bold, colorful prints and flashy, sexy image.
“Versace has huge potential,” said Andrea Guerra, the CEO of Prada. ”The journey will be long and will require disciplined execution and patience.”
Barclays is serving as Capri Holdings’ financial advisor. Wachtell, Lipton, Rosen & Katz is its legal advisor.
