The transaction will be completed during the second half of the year. Subject to customary closing conditions, including regulatory approvals. It will be financed by EUR 1 billion of new debt and a loan facility of half a billion euros.
Capri once aimed to create a stable of luxury brands similar to LVMH and Richemont. But it will still own the Jimmy Choo and Michael Kors brands.
Prada seems to be creating its own mini empire. In addition to Versace, the Milan-based company owns the Miu Miu label. As well as several footwear brands and Milan's Marchesi patisserie.
«Versace has enormous potential,» Prada Group CEO Andrea Guerra said in a statement. “The journey will be long and will require disciplined execution and patience. The evolution of a company always takes time and constant focus..... Despite the uncertainties of the industry, we look to the future with confidence, focused on a long-term strategic vision.”.
In 2023, Capri attempted to merge with another American luxury goods group, Tapestry, which also owns Coach, Kate Spade and Stuart Weitzman. The merger was eventually blocked by a federal judge.
Source: jckonline.com
