Vol. 1 (2024)
Case Studies

How vertical integration through M&A supports sustainable development: the case of Pattern Group

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  • Valentina Chiaudano,
  • Hafsa Shakil
Valentina Chiaudano
Department of Management, University of Turin
Hafsa Shakil
Department of Management, University of Turin

Published 2024-12-16

Keywords

  • supply chain,
  • sustainable development,
  • luxury textile,
  • merger and acquisition,
  • sustainability

Copyright (c) 2024 Valentina Chiaudano, Hafsa Shakil

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

In recent decades, the textile industry has faced major sustainability challenges, including high environmental impact, intensive use of natural resources and unethical working conditions along the supply chain. In response to these challenges, luxury companies are increasingly paying attention to the sustainability of their supply chains, also employing upstream integration strategies. This article analyses the case of the Pattern Group to understand how vertical integration, achieved through mergers and acquisitions (M&A), can foster sustainable development in the luxury textile sector. Based on a qualitative approach, the research examines the Pattern Group’s acquisitions through M&A, specifically focusing on their impact on sustainability’s economic, social and environmental dimensions. The results show that vertical integration through M&A allows for greater control of the supply chain, stimulates sustainable innovation, preserves craftsmanship skills and creates an aggregation of companies that can strengthen the international competitiveness of a specific area.

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