Prada and Zegna Acquire Stake in Italian Knitwear Brand — Retail Bum

Prada and Zegna are acquiring a minority stake in Italian knitwear brand Luigi Fedeli e Figlio.

The two luxury brands will gain a 15% stake each, while CEO Luigi Fedeli will retain a 70% majority stake in the company.

The nearly 90-year-old brand is currently operated by a third generation of the Fedeli family. Its knitwear products are today sold through 13 mono-brand boutiques and 400 multi-brand stores globally.

“I strongly believe in Italy and agreements that unite Italian players,” Fedeli said, “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,” he added.

Under the terms of the deal, Prada Group’s Chairman and Executive Director, Patrizio Bertelli, and Ermenegildo Zegna Group’s Chairman and CEO, Gildo Zegna, will join Fedeli’s board of directors.

“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,” Zegna said. “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.”

Originally published at https://retailbum.com on June 8, 2023.