Staff International Buys Majority Stake of Jil Sander Leather Goods Supplier
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MILAN — OTB continues to support its pipeline.
Through its manufacturing arm Staff International, the Italian fashion group has acquired a majority stake in storied Florentine leather goods company Frassineti.
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Frassineti is a longtime and strategic supplier of the Jil Sander brand, controlled by OTB.
The agreement’s objective is to guarantee a solid and faster growth of Frassineti, and OTB founder Renzo Rosso underscored the relevance of such an operation. Financial terms were not disclosed.
“Our luxury brands share a strong attention to artisanal craftsmanship and the use of raw materials of the highest quality, made possible only through the collaboration with companies such as Frassineti, which contribute to making the pipeline of the fashion sector in Italy and the world unique.”
Rosso said these companies and these skills “constitute the strength of our country and it is on these that we must continue to invest.” The entrepreneur emphasized the role of OTB in this support, “flanking the companies in their growth path and enhancing the Made in Italy excellence.” Thanks to this operation, the group’s technology and sustainability policies will be available to Frassineti, with the goal of an an increasingly more responsible business model.
Frassineti’s founding family will maintain a minority stake in the company and Gaia Frassineti will continue to cover the role of chief executive officer.
Founded in 1964, Frassineti, which comprises 70 collaborators, produces high-end bags and leather goods.
Staff International’s network of suppliers today counts more than 800 companies in Italy.
Rosso told WWD earlier this year that he believes in supporting the pipeline “through a token presence” in small and medium-sized companies, which “must remain in the hands of the owners, without distorting them.”
Rosso said the luxury sector is expected to continue to grow and that to be well-positioned in “this global challenge, groups like ours must form alliances with the pipeline, guaranteeing operational continuity and creating new growth opportunities, with a strong attention to sustainability.”
Since 2013, OTB has flanked suppliers with the aim of supporting small and medium-size enterprises and safeguard Made in Italy production by guaranteeing easier and speedier access to credit through the C.A.S.H. program, which stands for Credito Agevolato [facilitated credit] Suppliers Help. At the end of 2022 the credit surpassed 450 million euros, made available to companies all along the supply chain, from those that provide raw materials and fabrics to those producing for the company and offering special processes, such as dyeing and washing.
In addition to Jil Sander and Staff International, OTB comprises Diesel, Maison Margiela, Marni, Viktor & Rolf and a stake in Amiri, as well as Brave Kid.
A web of small and medium-sized manufacturers contribute to the strength of Made in Italy production, and entrepreneurs are aware of the importance of protecting the network in any way possible. The need was intensified during the COVID-19 pandemic, spurring a wave of mergers and acquisitions, joint ventures, and the creation of new production poles.
Examples include Brunello Cucinelli’s acquisition of a 40 percent stake in Cariaggi Lanificio, the company’s longtime cashmere supplier, which helps to guarantee the supply and quality of the cashmere Cucinelli uses, providing a future for the next generations of both his company and that of Cariaggi.
Fendi in October acquired a majority stake in knitwear specialist Maglificio Matisse — the first M&A deal for the Rome-based luxury company.
In 2021, as a sign of an increased effort to protect the Italy’s supply chain, the Prada and Ermenegildo Zegna groups joined forces to acquire a majority stake in Filati Biagioli Modesto SpA, which specializes in the production of cashmere and other precious yarns.
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