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Translated by
Nicola Mira
Published
Oct 9, 2019
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Chanel to buy French tannery Degermann

Translated by
Nicola Mira
Published
Oct 9, 2019

The acquisition of the Degermann tannery by Chanel is almost a done deal. The French calfskin specialist was founded in 1832 in Barr, 35km south of Strasbourg, and generates half of its business through exports, chiefly to Italy, Germany, the USA, China and Switzerland.



degermann.com


FashionNetwork.com spoke to Degermann at the Lineapelle trade show held in Milan from October 2 to 4. The French company confirmed that negotiations are well under way, and Chanel is expected to finalise the deal and acquire a stake in Degermann by the end of 2019. Neither the value of the transaction nor the size of Chanel’s stake were disclosed.
 
With this acquisition, Chanel will further strengthen its supply chain, following a series of financial operations involving either a full take-over or the acquisition of a majority stake in local manufacturers.

Since August 2018, Chanel has bought French company Haas, Colomer Leather from Spain and, last July, Tuscan tannery Samanta. With the same goal of integrating supply-chain expertise within the group, Chanel also undertook financial operations linking it to Swiss watch specialist Kenissi and Finnish biodegradable material producer Sulapac.
 
In 2018, the luxury giant owned by the highly discreet Wertheimer brothers recorded a revenue of €9.88 billion, up 12.5% on an annual basis, and nearly doubled its investments, which were just shy of €900 million last year.

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