Zegna Purchases High-End Fabric Manufacturer Dondi To Enhance Fabric Supply Chain Control

Italy luxury group Ermenegildo Zegna (Zegna, hereinafter referred to as Zegna) announced the acquisition of 65% of Italy's high-end fabric producer Dondi group, but did not disclose specific transaction details.

Dondi is headquartered in Fossoli, Modena, Italy. It was founded in the 70s of last century by Edda Dondi and Lauro Dondi. It has more than 40 years of history. It mainly designs, produces and distributes high-end knitted fabrics for men and women. Its products are all produced in Italy, covering a wide range of countries including the United States, France, Germany, Japan, Korea and the United Kingdom. Cooperative customers include many fashion and luxury brands in Italy, and Zegna group is also one of them.

After the transaction is completed, the Dondi-Capelli family will hold the remaining 35% stake in the group and continue to be responsible for managing the company's design and operation. Dondi currently manages two daughters Lorella Dondi and her husband Guido Capelli. They said that Zegna is "an ideal partner and the next step in the future development of the group."

Zegna's CEO Gildo Zegna said: "the goal of this acquisition is to enhance our control over the fabric supply chain. A diversified, pure Italy supply chain is very important to us. "

This is not the first time that Zegna has used this mode of "acquisition of majority interest, but let the existing shareholders of the group continue to hold some equity and management rights of design and operation". In 2016, they bought Bonotto SpA, a high-end fabric manufacturer in Italy, in a similar way.