Versace has been owned since 2018 by Capri Holding, a multinational fashion group founded in 1981 by American designer Michael Kors.
At the time, Capri Holding paid $2 billion (€1.84bn) for Versace. However, it had been struggling in the recent era of 'quiet luxury’' to position the stalwart of Italian fashion with its sexy silhouettes and loud patterns.
"The transaction is expected to close in the second half of calendar 2025, subject to customary closing conditions including regulatory approvals," a press release said on Capri's website.
John D. Idol, the company's chairman and chief executive officer, also commented on the deal in a press statement.
“Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace. Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship. Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”
Idol also said the transaction reflects the group's commitment to increasing shareholder value and strengthen its balance sheet whilst powering Michael Kors and Jimmy Choo growth.
"We will continue to execute on the strategic initiatives shared at our recent Investor Day and remain confident in the long-term growth potential of Michael Kors and Jimmy Choo,” he added.
