Skadden Arps Slate Meagher & Flom and Wachtell Lipton Rosen & Katz have been called in for the sale of Versace by Capri Holdings to Prada for nearly $1.38bn in cash. 

A Skadden team led by corporate counsel Cristina Tomassini and partners Sandro de Bernardini and Peter Serating in London and New York are guiding Prada on the deal, which will create a multi-billion dollar fashion group positioned to compete with French luxury fashion conglomerates like Kering and LVMH.

The Prada Group already owns other brands including Miu Miu, Church’s and Marchesi 1824, as well as Prada and the sailing brand Luna Rossa. 

Skadden previously guided Prada’s USA arm when it bought 724 Fifth Avenue in New York, which housed its flagship store in the city, in 2023 for $425m. 

Meantime Wachtell is guiding Versace owner Capri Holdings, with the team led by corporate partners Joshua Cammaker and Mark Stagliano. Wachtell also counselled Capri in its $8.5bn acquisition by Tapestry in 2023, with Latham & Watkins guiding Tapestry on the deal. 

Versace’s sale price is significantly less than the $2.15bn Capri – then Michael Kors Holdings – spent when it bought Versace in 2018. Wachtell also acted for Capri in that deal, while Cleary Gottlieb Steen & Hamilton and Chiomenti acted for Versace. 

Versace’s sale to Prada comes as it has been operating at a loss amid a global slowdown in demand for luxury fashion. 

Prada, which has defied the slowdown and is looking to expand, said Versace’s “highly recognisable aesthetic… constitutes a strongly complementary addition” to its portfolio, adding the Milan-based company offered “significant untapped growth potential”.

The final cash consideration will be adjusted at closing, expected in the second half of 2025. The deal will be funded by roughly $1.7bn in new debt and has been approved by both the Prada and Capri Holdings boards of directors.

Barclays is serving as Capri’s financial advisor on the matter, while Citigroup Global Markets Europe and Goldman Sachs Bank Europe SE Succursale Italia are serving as financial advisors to Capri.