H.I.G. Capital portfolio company Cadicagroup acquires Varcotex, leader in the production of woven labels for the luxury sector
The acquisition is an important step in Cadicagroup’s development path through external growth, which, with 4 acquisitions in the last 36 months, has allowed the company to become one of the leading operators in high-end fashion accessories in Europe
H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with over €43 billion of capital under management, today announced the completion of the acquisition of Varcotex by its affiliated portfolio company Cadicagroup, a group specialized in the supply of accessories to the main clothing brands active in the premium and absolute luxury market.
The acquisition of Varcotex represents the fourth add-on completed by Cadicagroup since 2019, when H.I.G. started an ambitious aggregation plan focused on creating a center of excellence in the fashion accessories sector. With this acquisition, Cadicagroup establishes its European leadership in the luxury segment.
Based in Carpi (Modena) and with approximately 60 employees, Varcotex is a company active since 1982 in the direct production of woven labels, tags, printed labels and leather labels mainly for the luxury sector.
The integration with Varcotex will allow Cadicagroup to further develop its strategic positioning, strengthening its production capabilities and further enriching the group’s offering to high-end customers with an increasingly integrated supply chain in line with a greater focus and attention to sustainability.
Varcotex’s CEO, Paolo Munari, who has been active in the sector for more than 25 years, will reinvest in Cadicagroup and will remain involved in the management of the group’s production activity.
Paolo Munari commented: “We are thrilled to join Cadicagroup and excited to bring our production and technical skills to one of the largest groups in the fashion accessories sector for the luxury segment. As a result of the integration, Cadicagroup has the potential to become the only group in Europe with the ability to provide research excellence and made-in-Italy production services to its customers, thanks to its investment in research, design and product innovation”.
Massimo Stefanello, CEO of Cadicagroup, commented: “The acquisition of Varcotex adds another center of excellence to Cadicagroup, enriching our portfolio with new products and process skills in the field of tags, woven labels, packaging, buttons and labels with technology content. This acquisition gives even greater impetus to the vision of providing the Italian and international fashion industry with a reliable and competitive partner in terms of cost, responsiveness and services offered. We look forward to a successful partnership with Varcotex based on our shared values with regards to product innovation and the safeguarding of environmental resources”.
Raffaele Legnani, Managing Director of H.I.G. Capital in Italy, said: “We are thrilled to announce this new acquisition which reflects H.I.G.’s strategy, alongside Cadicagroup management, to position the company among the leaders in Europe’s fashion accessories sector and one of the main innovators with regards to product, service and sustainability”.
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