Purpose and Values
PRADA GROUP AND ERMENEGILDO ZEGNA GROUP ANNOUNCE ACQUISITION OF MINORITY
STAKE IN LUIGI FEDELI E FIGLIO S.R.L.
Each Group to Hold 15% Ownership Stake in Renowned Knitwear Company
Milan, June 6th 2023 – Prada Group and Ermenegildo Zegna Group today announced that they have reached an agreement to acquire a minority stake in Luigi Fedeli e Figlio S.r.l. (“Fedeli”). Founded in 1934 in Monza, Italy, and now overseen by a third generation of the Fedeli family, Fedeli is recognized worldwide for the excellence of 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.
The agreement provides that Prada Group and Ermenegildo Zegna Group will each acquire a 15% stake. Luigi Fedeli, currently Chairman and CEO of Fedeli, will hold the remaining 70% of the company and will continue in his present roles.
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.
The transaction is subject to clearance from the European Commission under the EC Merger Regulation.
Patrizio Bertelli said: “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 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”
Gildo Zegna remarked: “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.”
Luigi Fedeli stated: “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."
As it did in 2021 with the joint acquisition by Prada Group and Ermenegildo Zegna Group of a majority stake in Filati Biagioli Modesto S.p.A., assuring continuity, preserving know-how, and continuing to create value for ‘Made in Italy’ in the name of craftsmanship and innovation is the vision that unites Patrizio Bertelli and Gildo Zegna in this partnership.