Italy's Brunello Cucinelli sells 18.5% stake in Cariaggi to Chanel

The sale, which forms part of a strategic agreement, will see Brunello Cucinelli retain a 24.5 per cent stake, down from its original 43 per cent share. Meanwhile, Chanel's stake in the woollen manufacturer will stand at 24.5 per cent, marking a substantial increase in its influence within the company, Brunello Cucinelli said in a press release.

Simultaneously, the Cariaggi family has also sold a 6 per cent shareholding of Cariaggi Lanificio to Chanel. This transfer further strengthens Chanel's presence within the company while ensuring that the Cariaggi family retains majority control with a 51 per cent stake.

These transfers of share capital have led to a new distribution of ownership. The Cariaggi family now holds a controlling stake of 51 per cent, followed by equal shares of 24.5 per cent each held by Brunello Cucinelli and Chanel.

The parties have inked a long-term shareholders’ agreement to dictate the corporate governance of Cariaggi Lanificio. The terms of this agreement ensure that the Cariaggi family will continue to oversee the control and management of the company.

Brunello Cucinelli, executive chairman and creative director of fashion house Brunello Cucinelli, said: “I am particularly happy on this day of truly historic importance. The agreement we have reached represents a splendid diadem that will enhance the value of the entire Italian supply chain, enormously pleased by the fact that a maison of absolute excellence in global fashion like Chanel has chosen to invest in made in Italy by sharing with us the beautiful Cariaggi wool mill project. I therefore consider it a joyful day of celebration, which we believe will be followed by years full of great achievements by virtue of this very, very special collaboration.

“By virtue of all these healthy and concrete elements, I sincerely thank the esteemed Cariaggi family, to whom my family and I have always been tied in a virtuous relationship of shared values, and the equally esteemed Bruno Pavlovsky, president of fashion at the prestigious French maison, which gives this memorable accord an added value of great beauty.”

Fibre2Fashion News Desk (DP)