MILAN — The Ermenegildo Zegna Group and Prada Group have joined forces once more, signaling one more example of a cooperative attitude increasingly emerging amongst Italian fashion entrepreneurs, and the importance of high-quality knitwear in the luxurious segment.

Zegna and Prada have agreed to purchase a 15 percent stake each in Luigi Fedeli e Figlio Srl.

Luigi Fedeli, currently chairman and chief executive officer of Fedeli, will hold the remaining 70 percent of the corporate and can proceed in his present roles.

Founded in 1934 in Monza, Italy, and now overseen by a 3rd generation of the Fedeli family, Fedeli is recognized for its Made in Italy knitwear and high quality yarns.

Gildo Zegna, chairman and CEO of the Ermenegildo Zegna Group, and Patrizio Bertelli, Prada Group chairman and executive director, will join Fedeli’s board of directors.

“This agreement for a Prada Group’s acquisition of a shareholding in Fedeli represents a strategic investment to preserve the know-how and tradition of an Italian excellence in high quality yarn,” Bertelli said.

“Through the years, the acquisition of historic Italian firms has enabled the group to construct a platform of luxury textile firms guaranteeing the very best quality and safeguarding the individuality of Italian craftsmanship,” said Gildo Zegna. “Fedeli’s own give attention to quality and sustainability has brought us closer. Along with including one other excellent craftsman in our textile supply chain, this acquisition makes me particularly proud because it underlines our commitment to contributing to the expansion of Fedeli and to preserving and enhancing the craftsmanship of Made in Italy.”

In 2021, in what was surely considered a significant latest partnership and an indication of an increased effort to guard the country’s unique supply chain, the 2 firms first joined forces to accumulate a majority stake in Filati Biagioli Modesto SpA, which focuses on the production of cashmere and other precious yarns.

“Once more, after the acquisition of Filati Biagioli, along with Zegna Group we’re committed to a cooperative and teamwork approach in the style and Made in Italy industry,” continued Bertelli. “This operation reflects the philosophy that our group has at all times pursued: direct control of the availability chain at each stage of the production process, which also allows us to hurry up on traceability of raw materials and on the transparency of our supply chain.”

Zegna enthused that “for the second time in two years, I’m supported on this journey by a fantastic 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.”

Luigi Fedeli stated that he “strongly believes in Italy and agreements that unite Italian players. Furthermore, the potential synergies identified by the Prada and Ermenegildo Zegna Groups perfectly align with Fedeli’s continuous pursuit of quality, craftsmanship and innovation. I’m delighted to affix forces with two leading groups within the industry and to proceed developing all-Italian excellence.”  

The transaction is subject to clearance from the European Commission under the EC Merger Regulation.

The mergers and acquisitions scene in Italy has been picking up speed, but it is usually evolving into nuanced partnerships and platforms meant to support a producing pipeline that’s increasingly relevant, yet more in danger within the wake of the COVID-19 pandemic.

Within the deal announced on Tuesday evening, the protection is aimed not at a supplier but at a single family-owned company and brand.

“We would like to flank the corporate and help it grow,” said Zegna, noting the sale was not related to any financial difficulties at Fedeli. “Quite the opposite, it’s a solid company with excellent results, and showing exceptional growth.”

Luigi Fedeli said the corporate has doubled sales in two years, reaching 22 million euros in 2022.

“I’ve known Gildo for years, we’re on the identical wavelength by way of product and mentality. There’s chemistry [with the partners], this isn’t only about numbers,” explained Fedeli.

“Yes, chemistry is significant, we first began talking [about a potential deal] before COVID-19, which slowed us down,” Zegna said. “The brand may be very well-known and appreciated for its knits and jersey. I’m a consumer myself, and my father at all times put in his made to measure orders.”

Zegna expressed strong confidence in Fedeli. “We are able to map out a method nevertheless it’s premature to debate it now, we just signed the deal today. Nevertheless, I can inform you that it’s stronger in menswear, while womenswear continues to be in its infancy, there’s lots to do, and Asia continues to be small,” he offered, pointing to segments and markets with strong growth potential.  

The U.S. has grown to turn out to be the brand’s first market, and Fedeli attributed this also to an area presence, built by his son Niccolò, who has opened two showrooms stateside.

“Our taste may be very much in keeping with that of American customers, we share the identical idea of high-quality product,” Fedeli said.

Through its eponymous brand, Fedeli is distributed in 13 monobrand boutiques in cities corresponding to Milan and Cannes, France, and eight franchised doors in South Korea, and greater than 400 multibrand stores worldwide, from Mitchells to Neiman Marcus and Stanley Korshak, amongst others.

“This can be a significant development and we would like to ensure that that that brand will remain Italian ceaselessly, it has a historical value,” Zegna said.

Within the Biagioli Modesto deal, Prada and Zegna each acquired a 40 percent stake in the corporate, which is predicated in Montale, outside Pistoia, Italy. The founding Biagioli family retained a 15 percent stake and the remaining 5 percent is owned by Renato Cotto, who took on the role of CEO.

On the time, Gildo Zegna and Bertelli explained the explanations behind the deal, sharing the goal to make sure continuity to the excellence of the corporate they acquired and to preserve its know-how. As entrepreneurs and industrialists, additionally they share a belief in developing their very own Made in Italy production chain ensuring uncompromising quality at every stage of the production process.

Other M&A examples in Italy include Moncler’s acquisition of Stone Island or Renzo Rosso’s OTB acquisition of Jil Sander.

In May, in the primary such deal for Chanel and Brunello Cucinelli, the 2 firms partnered on an acquisition of a 24.5 percent stake each in Italian cashmere manufacturer Cariaggi Lanificio SpA. This can be a latest development in a deal that was signed last 12 months by Cariaggi and Cucinelli, the latter’s first such M&A. At the moment, Cucinelli revealed he was buying a 43 percent stake in Cariaggi, his longtime cashmere supplier. While Chanel over time has been buying stakes in 40 suppliers, of which 15 are based in Italy, that is the primary time it’s partnering with one other established fashion brand.