Goldman Sachs Leads €2.5 Billion Financing for Prada-Versace Acquisition

Published 21 days agoGS

Goldman Sachs Leads €2.5 Billion Financing for Prada-Versace Acquisition

Goldman Sachs is at the forefront of a pivotal financial move, heading a consortium of banks to extend €2.5 billion in financing to Prada for its acquisition of Versace from Capri Holdings. This transaction underscores a significant investment in the luxury fashion market, marking a notable shift in brand ownership.

According to Insider Monkey, the financing plan allocates €1.5 billion towards the acquisition itself, with the remaining €1 billion earmarked for revitalizing Versace. Versace, acquired by Capri Holdings in 2018 for over €1.8 billion, has encountered financial difficulties, evidenced by a reported 15% revenue drop in the last quarter. Despite these setbacks, Capri has expressed confidence in the brand's long-term viability.

The acquisition will transition Versace back to Italian ownership, enhancing Prada's footing within the luxury goods sector. This strategic move positions Prada to compete more robustly against industry leaders like LVMH. Goldman Sachs' role in orchestrating this financing deal underscores its expertise in managing complex, high-profile transactions globally.

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