Prada Group and Ermenegildo Zegna Group have jointly acquired the majority shareholding interest in Filati Biagioli Modesto S.p.A., a textile company based in Montale, Italy.
Filati Biagioli Modesto specializes in the production of cashmere and other noble yarns and fibers. The Prada Group and the Ermenegildo Zegna Group will each be assigned 40 percent of the shares of the company, the Biagioli Family will hold 15 percent and the remaining 5 percent will be owned by Renato Cotto, a manager from Biella, Italy, with a long career in the sector, who will be appointed CEO.
Gildo Zegna, CEO of the Zegna Group, will be appointed chairman, while Franca Biagioli and Patrizio Bertelli, CEO of the Prada Group, will join the board of directors. Terms of the deal were not disclosed.
“This acquisition is in line with the philosophy that the Prada Group has always pursued: direct control of the entire supply chain to ensure uncompromising quality at every stage of the production process,” Bertelli said. “It represents a further strategic investment that allows us to preserve the know-how and century-old tradition of an Italian excellence in the production of fine yarns. It also proves the cooperative attitude between two Italian groups, part of the much-hoped-for goal of a teamwork approach in the Italian fashion industry and Italian manufacturing.”
The Prada Group owns the luxury brands Prada, Miu Miu, Church’s, Car Shoe and Pasticceria Marchesi. It designs, manufactures and distributes ready-to-wear collections, leather goods and footwear in more than 70 countries through a network of 633 stores, as well as e-commerce channels, selected e-tailers and department stores around the world. The Group, which also operates in the eyewear and fragrances sector through licensing agreements, has 23 owned factories.
Earlier this month, Ermenegildo Zegna Group acquired the majority stake in Tessitura Ubertino, a company specialized in high-end fabrics for women, based in Pratrivero, Biella.