Prada said it has acquired a 10% stake in Italian leather group Rino Mastrotto.
Rino Mastrotto, backed by private equity firm Renaissance Partners, produces leather for the luxury, automotive and interior design sectors.
A Thursday statement by the company said the move is to firm up its grip over the production process.
“Investing in Rino Mastrotto allows our group to strengthen its control over a highly strategic phase of the production process”, Prada’s Chairman Patrizio Bertelli said in a statement.
Prada said that under the deal, it will transfer two tanneries (Italy’s Conceria Superior and France’s Tannerie Limoges) to Rino Mastrotto.
Although it did not specify the amount, it also said it will make a cash investment in Rino Mastrotto.
