Hermès Strengthens Supply Chain, Acquires 15% of Lanificio Colombo

Hermès invests in Italy. The French group has taken a 15% stake in the Italian mill Lanificio Colombo, specialized in the processing and production of cashmere and historical supplier of the firm, without disclosing the financial terms of the agreement. The factory posted a turnover of €100 million in 2024, down 6% on the previous year, and posted €7.9 million in profit.

The French company has invested, for the first time, in the capital of an Italian supplier. Hermès has always been committed to strengthening its production in its local market, especially in leather goods, and in Switzerland for watchmaking.

However, in 2023, the possibility arose for the group to take minority stakes in its Italian apparel and footwear subcontractors, further integrating their supply chains within the company, Pambianco has reported.

Hermès joins Lanificio Colombo as strategic partner, founding family retains control

Lanificio Colombo recorded a turnover of €100 million at the close of the last financial year, down 6% from 2023, and posting €7.9 million in profits. The company is a supplier of products for other luxury brands such as Prada, Burberry, Chanel and Valentino, in addition to distributing through its own brands.

Although the terms of the deal have not been disclosed, local media have stated that the company’s governance will not be affected: the second generation of the Colombo family, currently led by Alessandro Colombo, will retain control of the company and Hermès joins only as a strategic partner.

Hermès carries out this transaction after closing the last quarter of the financial year with €3.9 billion in turnover, an increase of 5% over the same period of the previous year. Sales rose 10%, showing a slight improvement over the second quarter and a solid performance in Europe, the Americas and Asia.