Private equity firm Advent International has recently acquired a majority stake in Australian fashion brand Zimmermann, in a deal worth over $1 billion. The purchase was made from the founding family of Zimmermann and Italy’s Style Capital. Although the financial details were not disclosed, sources have revealed that the acquisition valued the brand at around 14 times its core profit, totaling approximately $1.15 billion.
Zimmermann is renowned for its luxury swimwear and intricate floral prints, generating revenues of about $260 million and boasting a core profit margin exceeding 30%. With the investment from Advent, the brand intends to accelerate its expansion efforts in key markets such as Asia and the Middle East. Moreover, the funding will be utilized to strengthen its distribution network, particularly focusing on its digital platforms.
While Style Capital and the Zimmermann family will still retain a minority stake in the company, the brand will continue to be led by its founders and current management team. Style Capital, an Italian private equity firm specializing in luxury brands, owns other notable labels such as Twin-Set, Sundek, and Golden Goose.
Established in Sydney in 1991 by sisters Nicky and Simone Zimmermann, the brand has gained international recognition for its high-end fashion offerings. Besides collaborating with leading luxury retailers worldwide, Zimmermann operates 58 stores across Australia, the United States, the United Kingdom, Europe, and China. Additionally, the brand has its own online store.
Advent International primarily focuses on investments within the retail and consumer goods sectors. Its portfolio includes renowned companies like sports clothing maker Lululemon, perfume brands Parfums de Marly and Initio Parfums Privés, beauty retailer Douglas, and makeup brands bareMinerals, BUXOM, and Laura Mercier.
This acquisition signifies a significant milestone for Zimmermann as it looks to further expand globally and solidify its position as a leading fashion brand within the industry. With Advent’s support, the brand is well-positioned for continued success and growth in the international market.
Useful links:
1. Zimmermann Official Website
2. Advent International Official Website
