US law firms Skadden and Wachtell, Lipton, Rosen & Katz are leading on the sale of Versace to Prada for nearly $1.38 billion in cash.
Skadden is serving as legal counsel to the Prada Group, which owns Prada as well as iconic brands Miu Miu and Church’s. Wachtell is representing Capri Holdings, a global fashion luxury group, which owns Versace, as well as Jimmy Choo and Michael Kors.
The deal will be funded by around $1.7 billion in new debt and has been approved by both the Prada and Capri Holdings boards of directors.
The sale of Versace is expected to deliver a number of benefits, including the strengthening of Capri Holdings’ balance sheet, enabling it to make accelerated strategic investments in Michael Kors, and to increase shareholder value.
The proceeds will be used to support Capri Holdings’ capital allocation priorities, including business investments, debt reduction, and future share repurchases.
The deal is expected to close in the second half of the year, subject to customary closing conditions including regulatory approvals.
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.
A cross-border BonelliErede team is advising Prada in relation to the Italian law aspects and financing of the transaction. The team includes partners Eliana Catalano, Emanuela Da Rin, Giovanni Guglielmetti, Vittorio Pomarici, as well as Dubai office managing partner Marco De Leo, for certain aspects of the operation concerning the activities of the Versace group in the Middle East.
The Wachtell team is led by corporate partners Joshua Cammaker and Mark Stagliano, based in New York.
Barclays is serving as Capri Holdings’ financial adviser on the matter, while Citigroup Global Markets Europe and Goldman Sachs Bank Europe are serving as financial advisers to Prada.
