Italian luxury fashion house Ermenegildo Zegna to list on NYSE

Ermenegildo Zegna Group, a world-renowned Italian luxury house, and Investindustrial Acquisition Corp (IIAC), a special purpose acquisition company sponsored by investment subsidiaries of Investindustrial VII LP, have announced a business agreement that is expected to make Zegna a public company listed on the New York Stock Exchange later this year.

Upon closing of the transaction, which is expected to occur in the fourth quarter of this year, subject to customary approvals and conditions and IIAC shareholder vote, the Zegna family will continue to control the company with an equity interest of approximately 62 %. Based on the value of the transaction, the merged entity will have an expected initial enterprise value of $3.2 billion with an expected market capitalization of $2.5 billion.

“More than 111 years ago, my grandfather and namesake founded Zegna with the belief that caring for both the natural environment and people was the foundation for creating the best textiles and a brand to success. Since then we have proudly followed in his footsteps to become one of the true Italian luxury houses. Today’s announcement underscores the success of our strategy of continuously focusing on the Group’s brand equity while continuing to build on our heritage, our philosophy of sustainability and the unique know-how that has makes our name synonymous with quality and luxury all over the world. The Zegna family will remain at the helm of the business after the closing of the transaction, and we will continue to invest in creativity, innovation, talent and technology to maintain Zegna’s leading position in the global market. luxury,” said Ermenegildo “Gildo” Zegna, CEO of Zegna Group.

Since its founding in 1910 by the company’s namesake, Ermenegildo Zegna, the group has grown from a producer of textiles and menswear to a leading supplier of luxury goods to customers around the world.

While the Zegna brand remains the Group’s flagship brand and an emblem of Italian excellence, in 2018 Zegna acquired the majority stake in the American luxury fashion brand Thom Browne. Zegna management capitalized on Thom Browne’s unique strengths of consistency and name recognition, younger customer base, strong digital penetration and iconic collections, doubling Thom Browne’s revenue since 2018.

Over the past few years, Zegna has strengthened its one-of-a-kind Made in Italy luxury textile laboratory platform through the acquisition of Italian textile manufacturers. The platform is a key competitive advantage alongside the Group’s ready-to-wear and made-to-measure offerings. It is the supplier of choice for some of the world’s most trusted luxury names while supplying the best materials to the group’s own brands, the company said on its website.

As of December 31, 2020, the Group is present in 80 countries through 296 directly operated stores, and this year the Group expects annual sales to approach those of 2019. In 1991, Zegna was the first luxury menswear brand to open in China. , and Greater China accounted for 35% of the company’s apparel, accessories and textile revenue in 2019.

Another important point, Zegna has reinforced its leadership in the luxury leisurewear segment, increasing this category from 38% of sales in 2016 to more than 50% in 2021 since the beginning of the year, while maintaining its position leader in the heritage formal wear segment.

Fibre2Fashion Information Desk (RKS)

Ermenegildo Zegna Group, a world-renowned Italian luxury house, and Investindustrial Acquisition Corp (IIAC), a special purpose acquisition company sponsored by investment subsidiaries of Investindustrial VII LP, have announced a business agreement that is expected to make Zegna a public company listed on the New York Stock Exchange later this year.