Prada and Zegna are teaming up to acquire a 40 percent stake in Filati Biagioli Modesto, an Italian cashmere yarn supplier.
The company, which is based in the Tuscan province of Pistoia, is a supplier for not only Prada and Zegna but also various other high-fashion labels such as Armani, Chanel, Dior, Louis Vuitton and Moncler.
While the terms of the deal were not revealed, Zegna CEO Gildo Zegna and Prada CEO Patrizio Bertelli will join the company’s board.
Prada and Zegna’s move to acquire a stake in Filati Biagioli Modesto’s business follows similar efforts by other brands such as Chanel, Burberry and LVMH. These luxury fashion brands have been snapping up smaller family-owned manufacturing businesses, including tanneries and handbag factories, as they struggle to plan for their companies’ next generation, Business of Fashion reported.
According to Italy’s national fashion chamber CNMI, the total number of company’s in the Italian fashion section has declined by 20,000 in just the past decade.