-By Ankita Dutta
Italian luxury brands Prada and Ermenegildo Zegna have each acquired a 15% stake in knitwear manufacturer Luigi Fedeli e Figlio. Luigi Fedeli will retain 70% and continue as CEO with the aim of maintaining Italian excellence and crafting tradition in fine yarns. The move aims to enhance the synergy between the two fashion giants and continue to support remaining all-Italian excellence. The acquisition follows the partnership they formed earlier this year when the companies acquired a controlling stake in Filati Biagioli Modesto.
Italian fashion companies, Prada and Ermenegildo Zegna, have acquired a minority ownership stake in knitwear firm, Luigi Fedeli e Figlio, to secure the tradition of Italian excellence in fine yarns. Prada and Ermenegildo Zegna confirmed that each will acquire 15 percent ownership stake in the Italian knitwear firm, while Luigi Fedeli will retain majority ownership of 70 percent and continue as the current CEO.
Founded in 1934 in Monza, Italy, Luigi Fedeli e Figlio is renowned for its fine yarns and knitted products, which are manufactured in Italy. The company is managed by third-generation Fedeli family heads and the Fedeli brand products are available in 13 single-brand stores and over 400 multi-brand shops worldwide.
Prada and Zegna will bring their expertise to the board of directors of Luigi Fedeli e Figlio, with the chairman of Ermenegildo Zegna Group, Gildo Zegna, and Patrizio Bertelli, Prada Group chairman and executive director, joining Fedeli’s board of directors.
The deal is part of Prada and Ermenegildo Zegna’s strategy to acquire Italian firms and thus keep promoting the tradition of Italian craftsmanship and innovation. The conviction I hold is firm in regards to both Italy and the pacts that bring together participants originating from the country. The potential synergies among both groups indicated in this deal are in line with the continuous pursuit of quality, craftsmanship, and innovation. I am so happy collaborating with two leading players in the industry and continuing to develop all-Italian excellence.”
The two fashion giants had already partnered to buy a majority stake in Filati Biagioli Modesto S.p.A. earlier this year. The majority shares in Filati Biagioli Modesto S.p.A. deal involved acquisition of a 40 percent stake by both companies.
According to Gildo Zegna, the acquisition of historic Italian companies has enabled the group to construct a luxury textile firm that guarantees the highest quality and safeguards the uniqueness of Italian craftsmanship. The acquisition of Fedeli supports this goal as the company also prioritises quality and sustainability.
Bertelli noted the acquisition as a strategic investment for Prada Group to preserve the Italian tradition of yarn excellence while maintaining direct control of its production. The approach taken by our organization has always centered on the management of the supply chain in its entirety, encompassing each step of the manufacturing procedure. By doing so, we can promptly enhance the trackability of materials in their raw form, as well as the honesty of our supply chain.