Italian luxury fashion brand Ermenegildo Zegna has announced its plans to list on the New York Stock Exchange (NYSE) through a merger with Investindustrial Acquisition Corp, a special-purpose acquisition company (SPAC). The deal values Ermenegildo Zegna at $3.2 billion, with an equity value of $2.5 billion. Under the agreement, Investindustrial will hold an 11% minority stake in the company, while the Zegna family will retain control with a 62% stake.

This move comes in the wake of L Catterton, a private equity firm, acquiring a majority stake in Etro, another Italian luxury brand. It appears that high-end, family-owned companies are recognizing the importance of partnering with experienced investors to drive growth and secure their future in the industry in the post-pandemic world.

Established in 1910, Ermenegildo Zegna has transformed from a textile and menswear producer into a major player in the luxury goods market. In 2018, the company acquired control of Thom Browne, expanding beyond its own brand. This strategic acquisition allowed Ermenegildo Zegna to tap into a customer base with a stronger focus on digital platforms and resulted in a doubling of revenues for the Thom Browne label.

Currently operating in 80 countries with 296 directly operated stores, Ermenegildo Zegna generated 35% of its revenues from Greater China in 2019 in the apparel, accessories, and textile sectors. The company has also experienced significant growth in the luxury leisurewear segment, which now represents over 50% of its sales. Despite this expansion, Ermenegildo Zegna has maintained its leadership position in the heritage formalwear segment.

CEO Ermenegildo ‘Gildo’ Zegna emphasized the company’s commitment to quality, sustainability, and craftsmanship. He stated that the Zegna family will continue to lead the company and invest in creativity, innovation, talent, and technology to maintain its position in the global luxury market.

Investindustrial, the partner in this merger, has a long history of investing in and supporting Italian brands. Founder Andrea C Bonomi believes that Ermenegildo Zegna’s family heritage and sustainability efforts align with Investindustrial’s investment strategy. The company will provide significant support and investment to help Ermenegildo Zegna expand its reach and bring its luxury craftsmanship to customers worldwide.

The decision to list Ermenegildo Zegna on the NYSE reflects a growing trend in the fashion industry, with various fashion businesses across different price points opting to go public on stock exchanges in Europe and the US. It seems that fashion companies are realizing the advantages of accessing capital markets, attracting strong partners, and gaining exposure to a wider investor base to fuel their growth in an increasingly competitive market.

Sources:
– [Ermenegildo Zegna Announces Agreement to List on NYSE](https://www.businesswire.com/news/home/20211213005743/en/Ermenegildo-Zegna-Announces-Agreement-to-List-on-NYSE)
– [Luxury brand Ermenegildo Zegna to list on New York Stock Exchange](https://www.reuters.com/markets/deals/italy-luxury-brand-ermenegildo-zegna-list-new-york-stock-exchange-2021-12-13/)