Prada, Zegna acquire minority stake in knitwear firm Fedeli

The luxury fashion groups will each acquire a 15% stake in knitwear company Fedeli, while Luigi Fedeli, the current chief executive, will retain a majority ownership of 70% and continue serving in his current role.

Other details about the transaction were not disclosed.

Italy, renowned for its rich heritage of intricate craftsmanship, is home to numerous small manufacturers that dominate the global production of luxury clothing and leather goods.

Fedeli, established in 1934 in Monza, Italy, has remained under the stewardship of the Fedeli family for three generations. The brand has gained acclaim for its knitwear and premium yarns.

"This agreement ... represents a strategic investment to preserve the know-how and tradition of Italian excellence in fine yarn," Patrizio Bertelli, Prada Group chairman, said in a statement.

Gildo Zegna, the top boss of Zegna, and Bertelli will be appointed to the board of Fedeli, the companies said in a joint statement.