In a blockbuster move poised to send ripples through the haute couture universe, Capri Holdings Ltd. has struck a deal to sell Versace—the flamboyant crown jewel of Italian fashion—to Prada Group for a staggering €1.25 billion ($1.37 billion). The deal, announced Thursday, marks a seismic shift in the luxury fashion landscape and positions Prada for an even fiercer role on the global stage.
Capri Tightens Focus, Prada Expands Empire
Capri Holdings, the parent company of Michael Kors and Jimmy Choo, said the sale would sharpen its strategic vision and strengthen its financial foundation.
“Versace is an iconic Italian fashion house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace,” said John Idol, chairman and CEO of Capri Holdings. “Over the last six years, we’ve repositioned the brand to highlight its heritage and craftsmanship. Now, it’s poised for long-term success under Prada.”
The proceeds from the deal, according to Capri’s statement, will be channeled into business investments, debt reduction, and share repurchases—a tactical shift intended to boost shareholder value and turbocharge growth for Michael Kors and Jimmy Choo.
