12:18 PM EDT, 04/10/2025 (MT Newswires) -- Capri (CPRI) said Thursday that it will sell Versace to Italian luxury company Prada for about $1.38 billion in cash as it looks to accelerate investments in Michael Kors.

Prada separately said the deal's cash consideration, based on an enterprise value of 1.25 billion euros ($1.40 billion), is subject to adjustments at closing. Capri's statement also mentioned future adjustments to the purchase price.

The transaction, which requires approval from regulators, is expected to complete in the second half of this year, the companies said. Shares of Capri fell 9% intraday Thursday, and are down 29% so far this year.

Versace's sale enables Capri to make "accelerated strategic investments" in Michael Kors, the company said. Proceeds from the sale will also be used for debt reduction and share repurchases.

"This transaction reflects our commitment to increase shareholder value, strengthen our balance sheet and power the future growth of Michael Kors and Jimmy Choo," Capri Chief Executive John Idol said in the statement.

In February, Capri reported that Versace's revenue slid 15% year over year to $193 million in the fiscal third quarter, driven by weakness in both retail and wholesale.

"The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary," Prada Group CEO Andrea Guerra said.

Price: 14.95, Change: -1.41, Percent Change: -8.62