Prada and Ermenegildo Zegna groups have teamed up to acquire majority stake in Filati Biagioli Modesto SpA, a cashmere and other precious yarns producer. Prada and Ermenegildo Zegna will each hold 40 per cent stake in the company. A 15 per cent stake will be held by founding Biagioli family while the remaining 5 per cent will be owned by Renato Cotto, CEO of the new company.

Both Gildo Zegna, CEO, Ermenegildo Zegna and Patrizio Bertelli, CEO, Prada, believe, the deal will help both companies preserve their manufacturing expertise and technical knowledge. It will also boost their Made in Italy production chain. Gildo Zegna will be the chairman of the new company, while Franca Biagioli, a key representative of the founding family, and Bertelli will join the board of directors.