Prada (1913) M&A Announcement summary

Deal rationale and strategic fit

• Versace brings a globally recognized luxury brand with strong heritage and cultural relevance, complementing the group's portfolio and enhancing its position in the global luxury market.

• The acquisition expands reach to new customer segments and enriches overall brand architecture, with no creative or customer overlap.

• Versace's unique aesthetics and client base align with the group's luxury positioning and long-term vision.

Financial terms and conditions

• The group will acquire 100% of Versace for an enterprise value of €1.25 billion ($1.375 billion), on a debt- and cash-free basis, subject to closing adjustments.

• Final cash consideration will be determined at closing, adjusted for net working capital and net financial position, and includes significant tax loss carryforwards (~€0.2 billion in FY24).

• The all-cash acquisition is funded by €1.5 billion in new debt: €1.0 billion term loan and €0.5 billion bridge facility.

• Capri Holdings will fund certain transaction expenses; a completion accounts mechanism is in place.

Synergies and expected cost savings

• The transaction is positioned as a revenue project, with primary synergies expected from leveraging operational excellence, supply chain, retail network, and best practices.

• Access to the group's industrial platform, marketing, and retail excellence is expected to drive efficiency and long-term value.

• Some operational efficiencies may be realized, but the focus is on brand growth and scalable expansion.