Prada (1913) M&A Announcement summary

Deal rationale and strategic fit

• Versace brings a globally recognized luxury brand with strong heritage and distinct aesthetic, complementing the acquirer's portfolio and enhancing its position in the global luxury market without creative or customer overlap.

• The acquisition expands reach to new customer segments and enriches overall brand architecture, aligning with the group's long-term vision.

• Versace will retain its creative DNA while leveraging the acquirer's industrial, retail, and operational strengths.

Financial terms and conditions

• 100% of Versace acquired for an enterprise value of €1.25 billion ($1.375 billion), debt and cash free, subject to closing adjustments.

• Final cash consideration subject to customary adjustments, with Capri Holdings funding certain transaction expenses.

• €1.5 billion in new debt financing secured (€1.0 billion term loan, €0.5 billion bridge facility).

• Significant tax loss carryforwards (~€0.2 billion in FY24) included in the consideration.

• Closing expected in the second half of 2025.

Synergies and expected cost savings

• Synergies expected mainly from leveraging operational know-how, best practices, and platform capabilities, not from cost-cutting.

• Access to best-in-class industrial platform, marketing, and retail excellence expected to drive efficiency and long-term value.