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Ermenegildo Zegna will be published through SPAC transactions

In 1910, Zegna Zegna was founded in the hills of northern Italy as a family-owned manufacturer of wool fabrics.

On Monday, the global luxury fashion house, which owns the Tom Brown brand, took a major step into the public stock market through one of Wall Street’s biggest trends in recent years.

Zegna announced on Monday that it will be listed on the New York Stock Exchange. SPAC.. The deal is expected to value Zegna about $ 3.2 billion, including debt, and could pave the way for other private luxury giants to follow suit.

The deal is also the latest sign that major luxury fashion companies have found the opportunity to take over their rivals and become an empire and are preparing to grow even larger. This is probably the trend illustrated by LVMH Moet Hennessir Iviton. The fashion empire has been around in recent years Tiffany & Co...

Such acquisitions have skyrocketed in recent years, with rivals across the sea having similar empire-building ambitions. Capri Holdings, formerly known as Michael Kors Holdings, Won Italian fashion house Versace was $ 2.1 billion in 2018, and tapestry, formerly known as coach, has acquired companies such as Kate Spade and Stuart Weitzman.

The luxury industry is resilient as consumers continue to invest in jewelery, apparel and other fun, as the global economy gradually emerges from the pandemic. LVMH’s share of brands such as Dior, Stella McCartney and Fenty has increased by more than 60% this year. Kering, the parent company of labels such as Gucci and Saint Laurent, has increased by 45%.

Zegna, for the most part of its existence, was known primarily as the leading manufacturer of men’s clothing fabrics and later known as suits. (Still, other high-end labels, especially Tom ford.. However, by purchasing a majority stake in fashion brands in 2018 Tom Brown, Zegna has launched its own ambitious plan to stabilize luxury brands.

Zegna currently operates nearly 300 stores in 80 countries. And he is optimistic about the resurgence of consumer spending on fashion, and the company expects this year’s sales to approach pre-pandemic levels.

Zegna’s pursuit of more resources to expand is nothing new, but how it is done is new.

This is a fund raised on the stock market solely for the sole purpose of merging with SPAC (formally known as a special purpose acquisition company) and merging with a privately held company.

Zegna, the company’s CEO and grandson of its founder, said in a statement, “We have creativity, innovation, talent and technology to maintain Zegna’s leadership position in the global luxury market. We will continue to invest in. “

Such funds have exploded in popularity over the last two years to allow companies to enter the stock market faster than traditional initial public offerings. (SPACs are increasingly monitored by US regulators, where most of these funds are listed.)

The merger with Zegna is a fund run by Invest industrial, a European investment company. The deal will give Zegna about $ 880 million in cash and the entrepreneur’s stake in about 62%.

“Our goal is to support Zegna in this important new chapter in history while at the same time opening up the opportunity to invest in one of the last great iconic independent luxury brands,” said Investindustrial SPAC Chairman. Sergio Ermotti said: statement.

The transaction will be completed by the end of the year, awaiting approval by SPAC shareholders.

Vanessa Friedman Contribution report.

Ermenegildo Zegna will be published through SPAC transactions

Source link Ermenegildo Zegna will be published through SPAC transactions

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