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Fashion conglomerate Capri Holdings, (CPRI), has agreed to buy Italian luxury brand Versace from Prada for $1.4 billion. This deal had been anticipated, but was reportedly at risk of collapse because of market turmoil after President Donald Trump’s tariffs.
Shares of Capri, the parent of the Michael Kors and Jimmy Choo brands, had soared last week on a Bloomberg report that Prada agreed to pay nearly 1.5 billion euros ($1.6 billion) for the luxury clothier launched by Gianni Versace in 1978.
Capri announced on Thursday that Prada agreed to pay the sum of $1.375 billion cash, with the deal expected to close by the second half calendar 2025.
The Wall Street Journal had reported Wednesday that the deal's fate "was uncertain because Prada's namesake family still hadn't given its final approval." The WSJ reported later, citing sources familiar with the matter, that the approval was given Thursday morning.
Capri shares fell nearly 11% in early trading on Thursday to $14.65. They were trading at more than $40 until a federal judge blocked its $8.5 billion acquisition by Coach owner Tapestry (TPR).
