Ermenegildo Zegna has made a monumental move in the fashion industry by acquiring an 85% stake in the esteemed designer brand Thom Browne. This strategic partnership, with a staggering value of half a billion dollars, solidifies the bond between the Italian luxury menswear powerhouse and Thom Browne, who will still hold on to 15% ownership.
Known for his avant-garde designs and impeccable craftsmanship, Thom Browne will maintain his position as Chief Creative Officer, with Rodrigo Bazan continuing as the Chief Executive Officer. The collaboration between the two brands is anticipated to usher in a new era of growth and innovation.
Gildo Zegna, the CEO of Ermenegildo Zegna, has expressed his utmost confidence in the compatibility of the two labels. He believes that Thom Browne’s emphasis on luxury design for both men and women perfectly complements Zegna’s unwavering dedication to superior quality and artistry. With this acquisition, Thom Browne stands to benefit from Zegna’s unparalleled expertise in fabrics and extensive global presence, paving the way for an expanded retail footprint.
In light of the surge in millennials’ fascination with luxury fashion, Zegna views this collaboration as a strategic move to create enduring value for both entities. This partnership holds significant importance for Zegna, as the company has been keen on procuring a globally renowned brand that resonates with a younger audience. Previous attempts, such as the unsuccessful bid for Valentino in 2012, have only fueled Zegna’s quest for a thriving label.
Since launching his eponymous brand in 2001, Thom Browne has emerged as a trailblazer in the fashion realm, earning acclaim such as the CFDA’s prestigious Men’s Designer of the Year award. Under his visionary leadership, the brand has expanded to over 30 boutiques worldwide, with a burgeoning women’s line that has experienced a remarkable 30% surge in sales.
The acquisition also signifies the exit of Ken Suslow, the founder of Sandbridge Capital, from Thom Browne. Suslow lauded Ermenegildo Zegna as the perfect ally for the brand, underscoring the strategic foresight of all parties involved in exclusively pursuing this lucrative deal. With this momentous acquisition, both Ermenegildo Zegna and Thom Browne are poised to make remarkable strides in the fiercely competitive landscape of luxury fashion.
For more information on Ermenegildo Zegna and Thom Browne, visit their respective websites: Ermenegildo Zegna and Thom Browne.
