As M&A Activity in Italy’s Supply Chain Continues, Eurmoda Group Buys Macuz

MILAN – The wave of consolidation in Italy’s supply chain continues.

Eurmoda Group, which produces and supplies accessories for high-end fashion brands, has acquired 100 percent of Macuz Srl, a storied Florentine company active in the production of top-quality metal accessories.

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Through this acquisition, Eurmoda aims to reach sales of 100 million euros in two years. It currently reports sales of 50 million euros, while Macuz has revenues of between 25 and 30 million euros.

Established in Italy’s Veneto region in 1986, Eurmoda was founded with the aim to synergistically combine the expertise of companies producing high fashion accessories with mechanical and technological skills derived from eyewear in the Belluno district and goldsmithing in the Vicenza district.

In October 2019, private equity firm Mindful Capital Partners took control of Eurmoda, creating the holding company Margot SpA, with the aim to build a platform of excellence in the sector throughout Italy.

Since then, the company has acquired Alce Srl in Valsamoggia, near Bologna, and ABC Morini Srl in Scandicci, near Florence.

In January, the holding company of Margot and ABC Morini will merge into Eurmoda.

“Macuz represents one of the best expressions of Italian know-how in the field of fashion excellence,” said Marco Vecellio, chief executive officer of Eurmoda. “A reality that has been one of the pioneers in the development of Italy’s manufacturing sector in the luxury industry. We are really happy to be able to combine our skills, reinforcing a leadership based on uncompromising quality and a solid entrepreneurial culture based on sustainability and enhancement of the territory.”

Founded in Florence in 1952 by Marcello and Alma Macuz, Macuz is recognized for its high-quality craftsmanship and connection to the territory and will allow Eurmoda to expand its customer base and further strengthen its technologies, skills and plants through a vertical service and a fully integrated supply chain. The Macuz family will reinvest in the group and remain actively involved in the operational management of the companies.

“[CEO] Auro Macuz’s talent and entrepreneurial foresight have made the company a true jewel in its sector in Italy, with a history of growth that has lasted more than 70 years,” said Andrea Tuccio, managing partner of Mindful Capital Partners. “The quality of its products, recognized by the biggest international fashion houses, is the result of a corporate culture constantly striving for excellence in all components of the value chain, in which people, their passion and skills, occupy a central place. We are really proud to have accompanied Eurmoda in this operation, creating a group capable of playing a leading role for Made in Italy in a fast-growing market.”

The production hub will continue to grow, “investing in people, focusing in particular on female participation at all seniority levels, and on sustainability, for instance through the use of continuous recycling systems, photovoltaic panels, and solutions for air purification and heat recovery,” said Eurmoda and Mindful Capital Partners in a joint statement.

“I am sure that the coming together of Eurmoda’s and MCP’s expertise will ensure the continuation of a sustainable growth path that has never stopped, and that has led us to become one of the most appreciated players in the world of accessories for high fashion brands,” said Auro Macuz.

Small and medium-size companies make up the majority of Italy’s 62,000 fashion firms, according to Confindustria Moda. They form the backbone of Made in Italy production, a supply chain that works with the best luxury brands in the world. Entrepreneurs have realized it has become essential to protect this pipeline, which is expected to drive more consolidation, more M&A activity, more nuanced partnerships and more efforts to map out common goals.

For example, in 2021, the Ermenegildo Zegna Group and Prada Group joined forces to acquire a majority stake in Filati Biagioli Modesto SpA, which specializes in cashmere and precious yarn production. In June, the companies teamed up again, buying a 15 percent stake each in knitwear and fine yarns specialist Luigi Fedeli e Figlio Srl. Both Zegna and Prada have over the years invested in building their pipelines and supply chains, as well as their own manufacturing plants in Italy.

In May, in the first such deal for Chanel and Brunello Cucinelli, the companies partnered on an acquisition of a 24.5 percent stake each in Italian cashmere manufacturer Cariaggi Lanificio SpA. This was a development in a deal that was signed last year by Cariaggi and Cucinelli, the latter’s first such merger and acquisition. At that time, Cucinelli revealed he was buying a 43 percent stake in Cariaggi, his longtime cashmere supplier. While Chanel over the years has bought stakes in 40 suppliers, 15 of which are based in Italy, this is the first time it partnered with another established fashion brand.

Gruppo Florence has grown over the past three years to control around 24 companies, from knitwear and informal outerwear manufacturers to footwear specialists, reaching sales of 600 million euros — and there are no signs it plans to stop here. The founding families of these companies have agreed to reinvest minority stakes in the holding.

In April, investment holding San Quirico SpA acquired a 75 percent stake in MinervaHub, emerging as a leading aggregator of small and medium-size makers of components for luxury brands, from chains and metal details to galvanic treatments and hand embroideries.

The remaining 25 percent stake remains in the hands of one of the sellers, Xenon Private Equity, with other coinvestors that include president Matteo Marzotto. MinervaHub reports sales of more than 170 million euros, has a portfolio of more than 1,000 clients, of which are 20 among the main luxury brands, and 700-plus employees. In July, it took control of 100 percent of New and Best H.F. Srl, known for its expertise in high-end leather goods, shoes, ready-to-wear and accessories, and surface finishings.

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