The European Commission has given its consent to the operation with which Prada Group will gain full control of Versace, marking a crucial step in the international luxury sector. The transaction, assessed under the EU Merger Regulation, was examined using the simplified procedure, without raising any competition concerns.
According to Brussels, the market positions of the companies involved do not appear to raise risks of competitive pressure.
The agreement and its conditions
Prada announced on April 10 that it had signed a definitive agreement to acquire 100% of Versace from Capri Holdings, for an indicative total value of 1,25 billion euros (enterprise value), on a cash-free and debt-free basis.
The final consideration will be adjusted at closing to take into account changes in working capital and net financial position.
To finance the transaction, Prada has entered into a new €1,5 billion loan, divided into a €1 billion term loan and a €0,5 billion bridge facility.
Closing is expected in the second half of 2025, subject to regulatory approvals and other customary closing conditions.
Strategic implications and perspectives
For Prada, the acquisition represents an opportunity to strengthen its presence in the luxury segment and diversify its portfolio with a brand with a strong aesthetic identity and global recognition.
Versace, under the leadership of Capri Holdings, had shown mixed results, with the brand struggling to define a coherent positioning in the context of “quiet luxury”.
According to Prada, the brand will retain its “creative DNA and cultural authenticity,” while benefiting from the acquiring group's industrial infrastructure, distribution capacity, and operational expertise.
The operational transition—not only in terms of management but also from a strategic standpoint—will be gradual: Prada estimates that the "relaunch process" could take 18 to 24 months.
A strengthening of the group's industrial platform and an reduction of inefficiencies are also expected, with the aim of bringing out new synergies.
