BURANI GROUP ACQUIRES ITM FOR $10.7M
Byline: Alessandra Ilari
MILAN — The Mariella Burani Fashion Group continues its shopping spree with the acquisition of ITM SpA, a Como-based mill specializing in silk fabrics and jersey.
The acquisition, for which Burani will shell out $10.7 million by mid-January 2003, is a further step in the group’s vertical strategy in luxury apparel and accessories.
“ITM is one of the few specialists in lightweight fabrics that is able to offer a quick response and service to its clientele, which is increasingly more exigent in terms of service and delivery,” said Giovanni Burani, chief executive officer of his family’s namesake group. “With this acquisition, we are completing our vertical structure.”
Aside from its streamlined supply chain that promotes speed, efficiency and a good quality-to-price ratio, ITM’s solid financial position triggered the transaction. In 2001, the mill posted sales of $22.4 million with profits of $2.4 million. Further, the mill has been able to navigate through the troubled waters that have hit other Como silk producers, especially when prints weren’t in demand.
Over the past 18 months, the publicly listed Burani Group acquired Mila Schon, the Sahza apparel brand and four Italian accessories companies — Braccialini, Deimutti, Saddler-Sebastian and Baldinini — plus it formed a joint venture with fashion designer Stephen Fairchild.
Burani’s sales reflect the group’s growth, ballooning from $87 million in 1999 to $196 million in 2001, with a target this year of $226 million.