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Italian luxury group Zegna reveals $ 3.2 billion in US Spac deal

Italian luxury fashion group Zegna Zegna has agreed to partner with a US special-purpose acquisition company to bring its corporate value to $ 3.2 billion and open it up against the integration trend that is sweeping the luxury industry.

Zegna, a family-owned company since its inception in 1910, Spac It was launched by the European private equity group Investindustrial and chaired by former UBS CEO Sergio Ermotti.

Part of the money raised will help Zegna invest in the menswear business, provide the firepower for other brands to buy, and build on it. That $ 500 million purchase 2018 U.S. luxury label Thom Browne

Gildo Zegna, 65-year-old CEO, told FT: But that moment is right, the world is changing dramatically, and luxury is becoming very difficult. “

Zegna, Who in the pre-pandemic interview He said he wasn’t interested in opening up his business, he added. Scale is becoming important. .. .. With the right partner. .. .. When new opportunities come, we can do a great job. “

The listing decision contrasts with many independent family-owned luxury brands selling to larger conglomerates and retail investors, even before the pandemic caused havoc in the industry.

Family-owned Italian luxury brand Etro will be the latest to follow that trend on Monday, confirming the sale of a majority stake in LVMH-backed private equity group L Catterton, which will value a € 500 million business. It’s a schedule.

Under the terms of the Zegna transaction, the family will sell some of their holdings and hold 62 percent of the merged company given a $ 2.5 billion share value.

Zegna Zegna, London: The group had previously refused to go public © Jason Alden / Bloomberg

Revenues include approximately $ 400 million raised last year by Investindustrial Acquisition Corp, a New York-listed company merged with Zegna, and $ 250 million from unnamed retail investors.

Upon completion of the transaction, an additional $ 225 million will be paid by Invest industrial, an investment company operated by Andrea Bonomi. Bonomi himself, the heir to the Italian industrial family, appealed to Zegna from January to sign a contract after several months of negotiations.

By investing in Zegna, Investindustrial will acquire an 11% stake in the company, along with the shares it will receive as a sponsor of Spac. Investindustrial has promised to lock up the shares acquired through the investment for three years.

Zegna was founded by the guild’s grandfather Zegna as a supplier of fine textiles in the northern Italian town of Treviso.

The company has been known for luxury men’s suits since the 1960s and was one of the first luxury groups to enter China in 1991, establishing brand awareness early and, importantly, the largest market today. We have a strong relationship with the landlord.

With the declining demand for men’s suits in recent years, the company has shifted its focus to what Gildo Zegna calls “luxury leisure” and sold the factory to focus exclusively on others, so “shopping from sheep” Invested in the supply chain. Design, marketing, merchandising.

Since the acquisition of Thom Browne, Zegna told FT that the group has further upgraded the brand and doubled sales. With more than 6,000 staff, Zegna is also closely associated with the fabric suppliers Chanel, Tom Ford and Gucci.

Guild cousins ​​Paolo, sister Anna, and two sons Edoardo and Angelo also work in this business. When asked if the decision to list the shares could eventually lead outside executives of the Zegna family to take over the guild, Bonomi said it was “right” for the next CEO to become Zegna. However, he answered that it would lead to merits.

Italian luxury group Zegna reveals $ 3.2 billion in US Spac deal

Source link Italian luxury group Zegna reveals $ 3.2 billion in US Spac deal

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