Capri Holdings, the global fashion group behind Michael Kors, Jimmy Choo, and Versace, has officially signed an agreement to sell Versace to Prada for $1.375 billion in cash. The sale is expected to close in the second half of 2025, once it clears all necessary approvals.
Versace, a brand known for bold Italian glamour and high-end style, was founded in 1978 by Gianni Versace. Capri took ownership of the brand in 2018 and has since worked on repositioning it as a top-tier luxury label.
This included changes in product lines, marketing strategies, and store experiences, with the goal of long-term global growth.
Capri’s CEO, John Idol, shared that Prada is the right company to lead Versace into its next chapter. He believes the brand is now ready for continued success under a new owner.
Selling Versace is also part of Capri’s bigger plan. The company wants to sharpen its focus on the Michael Kors and Jimmy Choo brands.
The funds from this deal will be used to improve its financial position, invest in its remaining labels, pay off debt, and possibly buy back company shares in the future.
This move could help Capri become stronger financially and allow it to grow Michael Kors more aggressively in the global market.
Advisors for this transaction include Barclays, who helped with the finances, and Wachtell, Lipton, Rosen & Katz, who offered legal support.
Versace will now join Prada’s luxury portfolio, adding even more depth to its presence in the high-fashion world. Meanwhile, Capri is betting on a sharper, more focused business model.
