Italian fashion groups Prada and Ermenegildo Zegna have acquired a minority stake in knitwear company Luigi Fedeli e Figlio as a strategic investment to secure Italian excellence in fine yarns.
In a statement, Prada and Zegna confirmed they will each acquire a 15 percent stake in the Italian knitwear company, while Luigi Fedeli, the current chief executive, will retain majority ownership of 70 percent and continue serving in his current role.
Founded in 1934 in Monza, Italy, Luigi Fedeli e Figlio is now overseen by a third generation of the Fedeli family and is recognised for its Made in Italy knitwear and fine yarns. Through its eponymous brand, Fedeli is distributed in 13 mono-brand boutiques and over 400 multi-brand stores worldwide.
As part of the deal, Gildo Zegna, chairman and chief executive officer of the Ermenegildo Zegna Group, and Patrizio Bertelli, Prada Group chairman and executive director will join Fedeli’s board of directors.
Commenting on the deal, Luigi Fedeli said: “I strongly believe in Italy and agreements that unite Italian players. Moreover, the potential synergies identified by the Prada and Ermenegildo Zegna Groups perfectly align with Fedeli's continuous pursuit of quality, craftsmanship, and innovation. I am delighted to join forces with two leading groups in the industry and to continue developing all-Italian excellence."
Prada and Zegna continue to preserve Italian craftsmanship with latest M&A deal
This isn’t the first joint acquisition by Prada Group and Ermenegildo Zegna Group, in 2021, they acquired a majority stake in Filati Biagioli Modesto S.p.A., which specialises in cashmere and other precious yarns. They both acquired a 40 percent shareholding to continue to create value for Made in Italy in the name of craftsmanship and innovation.
Gildo Zegna said: “Over the years, the acquisition of historic Italian companies has enabled the group to build a platform of luxury textile companies guaranteeing the highest quality and safeguarding the uniqueness of Italian craftsmanship. Fedeli's own focus on quality and sustainability has brought us closer. In addition to including another excellent craftsman in our textile supply chain, this acquisition makes me particularly proud as it underlines our commitment to contributing to the growth of Fedeli and to preserving and enhancing the craftsmanship of Made in Italy.
“For the second time in two years, I am supported in this journey by a great entrepreneur from the Italian fashion industry with whom I share a passion for the ‘filiera’ and the ambition to create a system teeming up with Italian groups.”
Bertelli added: “This agreement for Prada Group's acquisition of a shareholding in Fedeli represents a strategic investment to preserve the know-how and tradition of Italian excellence in fine yarn. Once again, after the acquisition of Filati Biagioli, together with Zegna Group we are committed to a cooperative and teamwork approach in the fashion and Made in Italy industry.
“This operation reflects the philosophy that our group has always pursued: direct control of the supply chain at every single stage of the production process, which also allows us to speed up on traceability of raw materials and on the transparency of our supply chain.”