Dec. 2 (UPI) -- Capri Holdings announced Tuesday that it had completed the sale of Versace to Prada for $1.375 billion in cash.
In a press release, John D. Idol, Capri's chair and CEO, said the company would use the proceeds to repay most of its debt to strengthen its balance sheet.
"As a result, this transaction will significantly reduce our leverage ratio and provide greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future," Idol said. "We remain focused on executing our strategic initiatives across Michael Kors and Jimmy Choo to maximize the potential of our iconic brands. Looking ahead, we believe we are on track to stabilize our business this year while establishing a solid foundation for a return to growth in fiscal 2027."
Idol expressed his belief that Prada is an ideal place for Versace.
"I would like to express my gratitude to the entire Versace team for their dedication and contributions. In particular I would like to recognize Donatella Versace, Dario Vitale and Emmanuel Gintzburger for their outstanding leadership and commitment to the brand's evolution. I wish the Versace team continued success in the future, and believe Prada is the ideal partner to guide this celebrated luxury house into its next era of growth."
