Italian luxury fashion brand Ermenegildo Zegna has recently announced its plans to list shares on the New York Stock Exchange (NYSE) through a $3.2 billion deal with Investindustrial Acquisition Corp, a special-purpose acquisition company (SPAC). This strategic partnership values Ermenegildo Zegna at $3.2 billion in enterprise value and $2.5 billion in equity value, with the Zegna family maintaining control with a 62% stake. Investindustrial will hold an 11% minority stake in the brand.
The decision to seek a heavyweight partner like Investindustrial highlights a growing trend in the luxury fashion industry, where family-owned businesses are teaming up with experienced partners to leverage their luxury expertise and access to capital. This move comes in the wake of L Catterton’s acquisition of a majority stake in another Italian luxury fashion brand, Etro. Clearly, fashion companies are recognizing the need for strong partnerships to navigate the challenges and opportunities presented by the post-pandemic landscape.
Since its founding in 1910, Ermenegildo Zegna has evolved from a menswear and textile producer to a global powerhouse in luxury goods. Its acquisition of Thom Browne in 2018 allowed the brand to expand its portfolio and target a customer base more inclined towards digital platforms. This move has paid off, as the company has doubled Thom Browne’s revenues. Presently, Ermenegildo Zegna operates in 80 countries, with 296 directly operated stores. Its success in the luxury leisurewear segment has been remarkable, with this category now accounting for over 50% of its sales.
The brand’s success in China has been particularly noteworthy. In 1991, Ermenegildo Zegna became the first luxury menswear brand to enter the Chinese market, and by 2019, Greater China represented 35% of its revenue from apparel, accessories, and textiles. The brand has also successfully attracted younger consumers through various partnerships and collaborations, further enhancing its reputation in the industry.
Looking ahead, Ermenegildo Zegna remains committed to its core values of quality and sustainability. CEO Ermenegildo ‘Gildo’ Zegna stressed the brand’s dedication to preserving brand equity, heritage, and craftsmanship. The Zegna family will continue to lead the company, investing in creativity, innovation, talent, and technology to maintain its leadership position in the global luxury market.
Investindustrial, headed by founder Andrea C Bonomi, shares this vision and is dedicated to supporting and expanding Italian brands. The partnership with Ermenegildo Zegna aligns perfectly with Investindustrial’s focus on brands with rich family heritage and a strong commitment to sustainability. The company will make a substantial investment to support Zegna’s growth and global expansion, spreading its unparalleled heritage and luxury craftsmanship to customers worldwide.
As more fashion-related businesses, regardless of price levels, choose to list their shares on stock exchanges, Ermenegildo Zegna’s decision to list on the NYSE demonstrates its ambition for future growth and solidifies its position in the luxury fashion industry. With Investindustrial as a partner, the brand is well-positioned to navigate the ever-changing landscape and seize new opportunities.
Links:
1. Ermenegildo Zegna – Beyond Luxury Fashion
2. Ermenegildo Zegna – Business of Fashion
