- The Zegna family retains control of approximately $1 million in shares. 62%; the expected initial enterprise value of the combined entity is US$3.2 billion
- The vertical integration of the group and the Italian-made luxury textiles, apparel and knitwear platforms ensure the highest level of excellence while maintaining the tradition of sustainable development
- Successfully acquired the iconic brand Thom Browne, demonstrating the Group’s M&A strategic strength and brand development capabilities
- Partner with Investindustrial to support Zegna’s continued growth plan
Ermenegildo Zegna Group (“Zegna”, “Group” or “Company”), a world-renowned Italian luxury goods company, and Investindustrial Acquisition Corp. (“IIAC”), a special purpose acquisition company initiated by Investindustrial’s investment subsidiary VII LP today announced a definitive commercial agreement, which is expected to make Zegna a public company listed on the New York Stock Exchange later this year.
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Ermenegildo “Gildo” Zegna, CEO of Zegna Group Say: “When my grandfather and the man of the same name founded Zegna more than 111 years ago, they firmly believed that caring for the natural environment and human beings is the cornerstone of creating the best textiles and successful brands. Since then, we have proudly followed in his footsteps and become the real Italian One of the luxury homes in. Today’s announcement emphasizes the success of our strategy, which is to continue to focus on the group’s brand equity, while continuing to carry forward our traditions, sustainable development spirit and unique craftsmanship, which makes our name synonymous with quality and quality Global luxury goods. After the transaction is completed, the Zegna family will continue to helm the company. We will continue to invest in creativity, innovation, talent and technology to maintain Zegna’s leading position in the global luxury goods market.”
Since its founding in 1910 by the company of the same name, Ermenegildo Zegna, the group has grown from a manufacturer of textiles and menswear to a leading supplier of luxury goods to customers around the world. Although the Zegna brand is still the group’s flagship brand and a symbol of Italian excellence, Zegna acquired a majority stake in the American luxury fashion brand Thom Browne in 2018. The increasing success of the brand under Zegna’s ownership is another example of the group’s ability to create integration and efficiency prospects through acquisitions. Zegna’s management took advantage of Thom Browne’s unique advantages, namely its consistency and popularity, young customer base, high digital penetration, and iconic series. As a result, Thom Browne’s revenue has doubled since 2018.
In the past few years, Zegna has strengthened its unique Italian-made luxury textile laboratory platform by acquiring Italian textile manufacturers. This platform, together with the Group’s ready-made garments and customized products, is a key competitive advantage. It is the preferred supplier of some of the world’s most respected luxury brands, while also providing the best materials for the group’s own brands.
As of December 31, 2020, the group has operated in 80 countries through 296 directly-operated stores, and it is expected that the group’s annual sales this year will be close to 2019. In 1991, Zegna became the first luxury menswear brand to open in China. In 2019, Greater China accounted for 35% of the company’s clothing, accessories and textile revenue.
Equally important, Zegna expanded its leadership in the luxury casual wear sector, increasing sales in this category from 38% in 2016 to more than 50% year-to-date in 2021, while maintaining its position in the traditional formal wear sector. leading position. The company has also successfully attracted a new generation of customers through partnerships and cooperation, further enhancing the brand’s popularity among young consumers.
According to customary approvals and conditions and IIAC’s shareholder voting, the Zegna family will continue to control the company and hold approximately 62% of the shares after the transaction is expected to be completed in the fourth quarter of this year.Based on the transaction value, the expected initial enterprise value of the combined entity is US$3.2 billion and the expected market value is US$2.5 billion1.
Andrea C. Bonomi, Founder of Investindustrial And Chairman of the Industrial Advisory Committee, Say: “For more than 30 years, Investindustrial has been investing in and supporting the evolving and leading Italian brands. We believe in the strength of Made in Italy. It has always been known worldwide for its quality, craftsmanship and innovation. Through Zegna, we have identified a group of Including a strong family tradition and a leading position in sustainable development-this is one of the pillars of Investindustrial’s investment strategy. We support Zegna Group with long-term commitments and major investments to support the company’s continued expansion and growth, and the goal is to Zegna’s unparalleled tradition and luxurious craftsmanship spread to customers all over the world.“
Sergio Ermotti, Chairman of Investindustrial Acquisition Corp., Say: “Our special purpose acquisition company was created for this kind of transaction: to list a company like Zegna that is well-managed, fundamentally strong, and has growth potential. Our goal now is to enter this important new chapter in Zegna’s history. Provide support while investing in one of the last great iconic independent luxury brands for the public.”
July 18, 2021, IIAC (New York Stock Exchange code:Acrylic) Reached a final agreement with Zegna to merge with a combination of stock and cash financing.The transaction is expected to bring a total revenue of approximately US$880 million2, Including US$403 million in cash held by IIAC in trust, a fully committed PIPE of US$250 million (in view of strong investor demand, an increase of US$50 million from the initial target amount) and approximately US$225 million3 In the forward purchase agreement signed with Investindustrial VII LP (“SSH”), an investment subsidiary strategic holding group S.à.rl, independently managed.According to the forward purchase agreement, SSH will invest approximately US$225 million3 Jointly promote shares with relevant sponsors4, Will provide them with approximately 11% of the company’s shares. SSH’s investment will be subject to a lock-up period of up to 3 years, which shows their firm commitment to the company and consistency with the Zegna family.
PIPE has attracted strong interest from many well-known institutional investors, including a huge commitment from a leading US global asset management company. PIPE saw participation…