Capri Holdings Limited (NYSE:CPRI) said Tuesday that it has officially closed the sale of its Versace brand to Prada S.p.A. (USOTC:PRDSF) in a deal valued at $1.375 billion in cash, subject to customary adjustments.
The luxury fashion group said it intends to use the proceeds to pay down the majority of its outstanding debt — a move that will materially improve its financial position, according to Chairman and CEO John D. Idol.
“This transaction will significantly reduce our leverage ratio and provide greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future,” Idol said.
Following the sale, Capri Holdings will continue focusing on its two remaining fashion houses — Michael Kors and Jimmy Choo — as it works to stabilize performance and build the groundwork for growth in fiscal 2027. The company said it remains committed to advancing its strategic initiatives across both brands.
Idol also extended appreciation to the teams behind Versace, singling out several leaders who helped guide the label’s recent evolution.
He specifically thanked Donatella Versace, Dario Vitale, and Emmanuel Gintzburger for their leadership and dedication.
“I wish the Versace team continued success in the future, and believe Prada is the ideal partner to guide this celebrated luxury house into its next era of growth,” Idol added.