The deal seems to be getting closer and closer. Prada, in fact, is reportedly negotiating a 2.5 billion loan to close the Versace deal. As MF Fashion writes, a group of banks led by Goldman Sachs is reportedly already ready to arrange a line of financing to the Prada Group. The funds, which are conditional on Prada’s completion of its acquisition of Versace, would be split 1.5 billion for the deal, while the remaining billion would be used to start the relaunch of the brand founded by Gianni Versace.
Closing the Versace deal
As MF Fashion points out, according to market sources, the closing of the deal would be consistent with Prada’s plan to increase sales from the current 5 billion to a targeted 10 billion. The crux of the matter, however, remains the price of Versace, currently estimated at around 1.5 billion euros. Capri Holdings had bought the Medusa brand in 2018 for 1.83 billion euros (including debt). However, the latest financial reports show a significant drop in sales. Versace posted -15 percent in the third quarter, which is still a marked improvement from the -28.2% in the second quarter. Despite this, Capri Holdings expects a positive performance in the future.
What if the deal doesn’t close?
Capri Holdings management has set a revenue target for Versace of 720 million euro for fiscal year 2025. This figure – again according to the forecast – should gradually increase to 815 million euro in 2028. According to rumors Prada Group CEO Andrea Guerra and Lorenzo Bertelli, son of the Prada-Bertelli couple and head of CSR, had flown to New York to meet with the Capri Holdings management team.
Some signs of clearing the air had also come with the appointment of Dario Vitale, former director of ready-to-wear at Miu Miu, who three weeks had been named creative director of Versace in place of Donatella. But what if the deal does not happen? As WWD points out, Trump’s recent announcement of tariffs, could trigger a trade war that would chill financial markets. It is precisely with this in mind that investors could be wait-and-see and wait for better times. Versace would then remain in the stable of Capri Holdings and so much for a return to Italy.
Photo from Versace
Read also:
- Prada-Versace deal almost closed: we will know by April
- Prada really has Versace in the bag for 1.5 billion
