Burberry agrees to buy Italian leather business
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Burberry says it has entered into an agreement to acquire a luxury leather-goods business from longstanding Italian partner CF&P.
CF&P employees, including the craftsmen who have worked with the British luxury fashion house for more than a decade, will transfer to the company once the transaction is complete, expected late this year.
“This acquisition is a major milestone for us and a statement of our ambition in this strategically important category,” says CEO Marco Gobbetti. “It will create a centre of excellence for Burberry’s leather goods, covering all activities from prototyping, product innovation, engineering and the co-ordination of production.”
Questions & Answers
Q.Which company is Burberry acquiring?
Which company is Burberry acquiring?
Burberry is acquiring a luxury leather-goods business from its longstanding Italian partner, CF&P. This acquisition will strengthen Burberry's position in the luxury leather market and integrate the expertise of CF&P's employees.
Q.What is the primary reason for this acquisition?
What is the primary reason for this acquisition?
The acquisition is intended to create a centre of excellence for Burberry’s leather goods. It aims to cover all activities from prototyping and product innovation to engineering and the co-ordination of production within the company.
Q.What will happen to the employees of the acquired business?
What will happen to the employees of the acquired business?
All CF&P employees, including the experienced craftsmen who have collaborated with Burberry for over ten years, will transfer to Burberry once the transaction is finalised, which is expected by the end of this year.
Q.When is the acquisition expected to be completed?
When is the acquisition expected to be completed?
The transaction is expected to be completed late this year. Once finalised, it will bring the luxury leather-goods business and its employees under Burberry's ownership, forming a new centre of excellence.
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