MILAN – In what’s a serious partnership between two of probably the most revered corporations in Italy, and as an indication of an elevated effort to guard the nation’s distinctive provide chain, the Prada and Ermenegildo Zegna teams have joined forces to accumulate a majority stake in Filati Biagioli Modesto S.p.A., which specializes within the manufacturing of cashmere and different treasured yarns.
As per the settlement, whereas monetary particulars weren’t disclosed, Prada and Ermenegildo Zegna will every have a 40 p.c stake within the firm, which relies in Montale, outdoors Pistoia, Italy. The founding Biagioli household will retain a 15 p.c stake and the remaining 5 p.c can be owned by Renato Cotto, who has an in depth expertise in textiles having labored for the likes of Zegna Baruffa, Gruppo Dawson International, Cariaggi and Loro Piana, and who will tackle the function of chief government officer.
In an unique joint interview with WWD, Gildo Zegna, chief government officer of his household’s firm, and Patrizio Bertelli, CEO of Prada, defined the explanations behind the deal, clearly sharing the aim to make sure continuity to the excellence of the corporate they acquired and to protect its know-how. As entrepreneurs and industrialists, in addition they share a perception in growing their very own Made in Italy manufacturing chain.
“We have always aimed at producing the highest quality fabrics while also safeguarding Italy’s supply chain,” stated Zegna.
Likewise, Bertelli stated straight controlling one’s provide chain “ensures uncompromising quality at every stage of the production process.”
The mergers and acquisitions scene in Italy has been choosing up velocity, however it is usually evolving into nuanced partnerships and platforms meant to assist a producing pipeline that’s more and more related, but extra in danger within the wake of the COVID-19 pandemic.
Both Zegna and Bertelli underscored the “cooperative attitude” between the 2 teams. To make sure, the deal is an indication {that a} new teamwork strategy is steadily rising within the Italian trend business.
Gildo Zegna will tackle the function of chairman, whereas Franca Biagioli, a key consultant of the founding household, and Bertelli will be a part of the board of administrators.
“We wanted to strengthen our knitwear, we see much growth potential in this category and this will also help to further reinforce our pipeline,” stated Zegna. While Filati Biagioli Modesto is a strong firm, he stated the deal will assist strengthen it.
“To count on the support of an entrepreneur such as Patrizio Bertelli is important and will help preserve a jewel in the Italian manufacturing scene.”
The Ermenegildo Zegna Group has been steadily constructing its personal textile provide chain, most not too long ago by shopping for 60 p.c of Tessitura Ubertino, a number one producer of high-quality girls’s materials, primarily based in Prativero, close to Biella.
Speaking with WWD final week, Zegna had hinted at extra acquisitions and one specifically this summer season, however underscored that “we never enter these companies as dominators but as partners. We let the founders manage the business and we are by their side, respecting them as we deal with the commercial services, logistics and marketing.” Flexibility has develop into key and a greater management of the pipeline additionally helps velocity up time-to-market.
In addition to its personal Lanificio Zegna, the group’s textile provide chain contains Lanerie Agnona, Tessitura di Novara, Bonotto and Dondi, all acquired over time, serving to to lift its place within the nation by way of selection and dimension. In 2018, the family-owned group additionally finalized the acquisition of a controlling stake in Pelle Tessuta, which specializes within the weaving of leather-based, and purchased a majority stake in Cappellificio Cervo, a historic males’s hat model primarily based in Biella.
Bertelli stated the chance to enter into the deal was provided by Zegna and he realized it was “consistent with our image and our need to develop our knitwear.” Prada has over time structured its personal provide chain and right now has 20 manufacturing websites in Italy and three in Europe. Bertelli cited one other knitwear plant in Torgiano, close to Perugia. While defending jobs and know-how, he additionally pointed to development expectations within the luxurious section.
Gildo Zegna, CEO of Ermenegildo Zegna (left) and Patrizio Bertelli, CEO of Prada (proper).
Courtesy of Ermenegildo Zegna, Brigitte Lacombe/Courtesy of Prada
“We need more skills and to be stronger,” he defined. “There are no doubts the luxury market will grow – it’s evolving and we are adapting our industrial organizations to offer more service.”
The acquisition is not going to oblige Biagioli to work just for Zegna and Prada, quite the opposite, the corporate will proceed to supply for different manufacturers within the luxurious section.
Asked in regards to the rationale behind the partnership, Bertelli responded: “It’s very simple, we’ve known each other for years and we have excellent relations, as we do with other colleagues.”
He stated that there was an elevated trade of concepts inside friends within the business and members of the Camera della Moda, specifically from 2014.
“We’ve been exchanging points of view and there are no conflicts, so we’ve taken this opportunity together and there may be more in the future,” he revealed. He additionally added that there’s been “a slow, significant change in the attitude of companies in Italy, which no longer see each other as competitors. Together we can face problems connected to real estate, for example.”
Zegna concurred, saying that in the course of the COVID-19 pandemic, for all its adverse penalties, he and Bertelli grew nearer, serving to one another.
“COVID-19 has forced the acceleration of processes that had already begun,” echoed Bertelli. “Moncler’s acquisition of Stone Island or Renzo Rosso’s OTB acquisition of Jil Sander did not happen by chance. There is movement in our sector, companies are joining forces, there are new synergies and we must all be more intelligent.”
The knitwear pattern is turning into more and more essential, stated each the entrepreneurs, praising Cotto’s expertise within the sector. “He is the right person at the right moment, he knows the product and the international markets. This would not have been easy without him,” stated Zegna. “We really all work together. Cotto is an entrepreneur and it was very important to involve him, also with a stake.”
At the identical time, the truth that the Biagiolis stay as shareholders is “a recognition that the family has created the company, its heritage and know-how,” Zegna famous. “We will work with the Italian talent in the best possible way to grow. It’s a small strategic investment, but we all believe in this company.”
Sales of the Biagioli firm are anticipated to whole greater than 30 million euros in 2021, stated Bertelli.
In one other signal of solidarity, final April, when a devastating hearth burned a Valentino manufacturing plant in Tuscany to the bottom, as reported, Bertelli made certainly one of Prada’s close by factories obtainable to quite a few the Rome-based agency’s staff.
Asked to remark, Bertelli stated “selfishness and jealousy are the main evils of modern society. I am neither selfish nor jealous and I live much better this way. I aspire to do better and learn from those that I think can teach something and I try to help those that may need my help.”
Zegna chimed in by touting Bertelli’s generosity, whereas saying: “We both always raise the bar, we are never satisfied.”
“We are only apparently different, I seem more instinctive but we both reflect on things a lot,” mused Bertelli. “And we have both always worked in the industry, in manufacturing.”
