Hermès Acquires Minority Stake in Lanificio Colombo

Hermès has taken a new step in its vertical integration strategy by acquiring a minority stake in Lanificio Colombo, the renowned Piedmontese manufacturer specializing in cashmere and fine fibers. The transaction, which has just been confirmed to FashionNetwork, aims to strengthen ties between the iconic French fashion house and the long-standing supplier of high-end fabrics.

Founded in Borgosesia, in Italy's historic “wool district,” Lanificio Luigi Colombo has established itself internationally as one of the largest and most successful workshops specializing in cashmere and rare fibers such as vicuña and guanaco wool. Thanks to its century-old family expertise and “made in Italy” production, Lanificio Colombo has become a benchmark for luxury clothing manufacturers. It is this positioning in terms of materials and technical expertise that attracted Hermès' interest.

The acquisition is part of a strategy to secure its supply chain and guarantee access to the finest fibers. The company has already integrated other workshops of excellence in the past, from bootmaker John Lobb to glassmaker Saint-Louis and silversmith Puiforcat, in order to expand and protect its production ecosystem.

Beyond a desire for financial diversification, these acquisitions represent a commitment to preserving traditional crafts. From a financial standpoint, Hermès is approaching this operation with confidence, with sales exceeding €15 billion in 2024 and remarkable margins, demonstrating a solidity unique to the ultra-luxury segment that allows it to invest upstream in the chain.

For Lanificio Colombo, Hermès' entry represents both recognition and opportunity: on the one hand, a strong commercial link with one of the most demanding luxury clients; on the other, new resources to develop its industrial and innovation capabilities without losing sight of the artisanal identity that constitutes the company's value. According to estimates, the minority stake would correspond to 15% of the company's capital. As for Lanificio, its financial results for last year showed a turnover of around €100 million and a net profit of €7.9 million.

This acquisition strategy is in line with that of other luxury giants, giving them absolute control over the quality of their supply chain at a time when “made in Italy” is suffering.