The British fashion group Burberry Group Plc is bringing in additional production capacity. On Tuesday, the company announced that it had entered into a binding agreement with its Italian supplier Pattern SpA to acquire a development and production site in Turin. The purchase price for the business unit, which has previously only manufactured products for Burberry, is therefore 21 million euros. After a transition phase, the transaction is expected to be completed at the end of September.
Both companies are linked by a partnership of almost twenty years, during which the Italian textile manufacturer produced, among other things, down and quilted goods for Burberry. With the now agreed purchase of the corresponding production facilities, the fashion group has secured production capacities and additional skills to develop technical outerwear items. In addition, he is strengthening sustainability within his value chain with the transaction, since the Turin plant uses electricity exclusively from renewable sources and is expected to achieve complete climate neutrality this year.
According to Burberry, the acquisition complements the existing production sites in Yorkshire, England, as well as the leather goods production in Florence, which has now been integrated into the group of companies. As part of the agreement, the company will take over approximately 70 Pattern employees, as well as the Turin factory’s equipment and inventory. The Italian group will continue to operate its parts of the company that are not affected by the transaction independently.