Editor’s Note
LVMH’s acquisition of Italian manufacturer Pedemonte underscores its strategy of vertical integration to strengthen its jewelry and watch division. This move highlights the luxury giant’s focus on securing craftsmanship and supply chains to bolster its portfolio of high-end brands.
The French luxury conglomerate LVMH continues to expand its portfolio by acquiring suppliers. The group, owner of brands such as Louis Vuitton and Dior, has taken over the Italian jewelry manufacturer Pedemonte.
LVMH has purchased the company, which was previously held by the Equinox III fund, in a transaction whose amount has not been disclosed. According to LVMH, the acquisition is “strategic” for the jewelry and watch business, as it “will allow us to significantly increase our production capacity.”
Pedemonte was founded in 2020 from the merger of several independent jewelry manufacturers, some of which are centuries old. The group is headquartered in the cities of Valenza and Valmadonna in Alessandria, northern Italy, and also has offices in Paris. Pedemonte employs 350 artisans.
The acquisition of Pedemonte is part of the luxury conglomerate’s strategy to expand its production muscle and acquire its suppliers to secure its supply chain. The company carries out most of these operations through its Métiers d’Art division.
In recent months, the company has acquired the historic Italian tannery Nuti Ivo, located in Pisa, and at the end of September acquired a majority stake in the also tanning company Heng Long Italia. Additionally, LVMH also took a minority stake in leather goods manufacturer Robans.
Furthermore, last week, the company strengthened its production by launching a new factory for Louis Vuitton. The production plant will be located in the town of Civitanova Marche, in the Italian province of Macerata, and will specialize in the production of athletic footwear in a 10,000-square-meter facility. The plant is scheduled to open from 2023.
LVMH ended the first nine months of the fiscal year with a 23% increase in sales for its Watches & Jewelry division, reaching 7.575 billion euros. The division was the fastest-growing category in the period, only behind the Selective Retailing division. In total, the luxury group closed the first nine months with revenues of 56.485 billion euros, 28% more than in the same period the previous year.
