Luxury Ties Its Know-How to Supply as M&A Wave Reshapes Manufacturing Landscape

Although these are lean times for the luxury industry, a new wave of investment is sweeping the sector. Beyond corporate operations with brands that reach the end consumer, it is now the turn of the hands that make luxury. So far this year, the international luxury industry has seen a new wave of supplier acquisitions.

If the fashion industry tends to break away from verticalization, luxury has moved in the opposite direction in recent years. As a way to protect their most precious value (the product), international luxury giants take stakes or take over one hundred percent of suppliers, on a path towards becoming the sole owners of a certain process or to protect these small workshops or industries from closure and ensure their survival.

The latest of the fashion giants to make a move was Prada. In early June, the Italian group announced the acquisition of a 10% stake in linen tannery Rino Mastrotto. The company announced the transfer of two of the producers in its portfolio to Renaissance Partners, the fund that owns the company, to finance the operation.

Although the total amount has not been disclosed, the Italian group informed that the financing of the operation will be carried out through a transfer of two companies to the current owner of the tannery, the investment fund owned by Renaissance Partners.

The investment in Rino Mastrotto means for Prada the continuity of the reinforcement of the control "over a strategic phase of the production process", according to the president of the Italian group, Patrizio Bertelli, in a statement.

Prada acquired 10% of the Italian tannery Rino Mastrotto.

LVMH, for its part, strengthened its control over the Catalan company Riba Guixà in May. The French luxury conglomerate increased its presence in Spanish craftsmanship, strengthening its control over one of its latest acquisitions in the Spanish value chain.

To do so, the French group revoked the powers of attorney of the fourth generation of the founding family of Riba Guixà, half a year after appointing Andrea Bertolini as CEO of the company.

Riba Guixà is a Catalan tannery with more than ninety years of history that has since been part of the portfolio of LVMH Métiers d'Art, the French conglomerate's company dedicated to craftsmanship, since 2015. The French conglomerate entered Riba Guixà's capital by taking a 20% stake in the company, becoming one of the first operations carried out by LVMH Métiers d'Art.

LVMH has increased its presence in Spanish crafts by strengthening its control over Riba Guixà.

Kering, for its part, has strengthened its presence in the optical sector. At the beginning of April, the French group that owns Gucci announced the signing of an agreement with two Italian manufacturers of optical material: Visard and Mistral. The transaction, which is being carried out through Kering Eyewear, involves the purchase of 100% of Visard and the acquisition of a minority stake in Mistral (albeit with an option to purchase 100% in 2030).

Visard and Mistral, founded in 1985 and 1991, respectively, are based in the Italian region of Belluno and specialize in the manufacture of sunglasses and optical frames. Until now, both companies were suppliers to Kering Eyewear.

Chanel has acquired a 20% stake in Leo France.

The bet on the Italian tannery is growing. In March, Chanel announced an investment in Leo France, owned by the Pinazauti family, and acquired 20% of its capital.

Rumors about the possible transaction had been circulating for some time, but it was through information published in the commercial register that the operation was finally confirmed. Leo France is known as a leading manufacturer of fashion accessories and small metal parts for leather bags and clothing.

The acquisition of Leo France by Chanel is not the only one of the French maison, which already accumulates several stakes such as the leather companies Mabi and Renato Corti, the spinning mill Caraggi or the shoe factories Roveda or Nillab manifatture.

In early 2025, Richemont, the Swiss luxury giant, owner of brands such as Montblanc and Cartier, expanded its brand portfolio with the acquisition of the Italian Miles Group. Richemont, which operates mainly in the jewelry and watchmaking segment, acquired 85% of the capital of the Italian knitwear company, thus taking a majority stake.