Kering buys majority stake in France Croco

Former PPR, from now on Kering, has announced the

acquisition of a majority stake in its supplier France Croco. The crocodile skin tannery is based in Normandy and produces leather for watchstraps, shoes and handbags.

Kering announced the deal on March, 25 but it has not disclosed the sum invested in the crocodile skin tannery. France Croco will now supply to the brands within the group such as Gucci or Alexander McQueen, as well as to its existing clients.

Kering's vertical integration plan

As explained by Kering, this vertical integration is part of their strategy to better support its brands to help them reach their potential. Kering plans to invest in the tannery in the coming months in order to increase its production capacity as published by the French media.

France Croco's activities are highly complementary to Caravel, another tannery owned by Kering, specialised in sourcing and tanning of precious skins. This transaction will thus allow Kering to also reinforce its leading role in the luxury market.

This operation does not change France Croco's long term supply relations implemented with suppliers and customers, highlights ´4Traders’.

Dan Lewkowicz will remain CEO of the company.