Who grabbed the Zimmermann brand
From bikinis sewn in the home garage to the catwalks of Paris, passing through the Italian acquisition by the Style Capital fund and now by that of Advent International, one of the major global private equity investors. The Australian luxury fashion brand Zimmermann is also preparing to conquer Asia and the Middle East. Facts, numbers and predictions
The Australian luxury fashion brand Zimmermann comes under the control of Advent International, one of the largest global private equity investors, which has acquired the majority from the Italian fund Style Capital .
As already anticipated at the end of July, the move was in the air and, although the financial terms of the agreement have not been disclosed, according to the rumors reported by MF Fashion , the operation is worth around 1 billion euros.
THE ZIMMERMANN STORY
Bohemian dresses, soft and wide in soft colors that do not disdain even the warmest and brightest ones. Light ruffles and ruffles that make your mind fly to the sea, perhaps on an Australian beach right where the brand of sisters Nicky and Simone Zimmermann was born.
AsElle recalls, the success had been predicted in unsuspecting times by the Sydney Morning Herald , who had written: "If Sydney were a woman, she would be tanned, bold and would wear a Zimmermann bathing suit".
Founded in 1991, initially the brand, based in Sydney, started from the symbolic element of summer and holidays: the swimsuit, or rather the bikini, to then grow up to tread the catwalks before New York and then Paris during the fashion weeks, conquering various celebrities, including the Princess of Wales Kate Middleton, Kendall Jenner, Taylor Swift and Beyoncé.
The pair of sisters inherited their passion for fashion from their mother and a German aunt and, like them, if one was better at sewing and the other at creating, Nicky is the mind that since she was a little girl made clothes for herself and for friends while Simone, together with Chris Olliver, husband of Nicky and CEO of the brand, takes care of the business of the activity.
ZIMMERMANN'S BUSINESS
In 2022, reports MF Fashion , Zimmermann reached 237 million euros in revenues and could exceed 296 million euros in turnover and 80 million euros in ebitda in 2023.
THE ITALIAN ADVENTURE WITH STYLE CAPITAL
The agreement with Advent International comes less than three years after the previous acquisition by the Italian fund Style Capital led by Roberta Benaglia.
“At the end of 2020 – reads Fashion Network – the fund had acquired almost 70% of Zimmermann's capital from the American investment company General Atlantic for an estimated amount of around 300 million euros. At the time, the company's turnover was 148 million euros”. Since then, Zimmermann has expanded throughout the United States and Europe – including Italy – bringing its total worldwide stores to 58.
Style Capital, the article also recalls, has a rich portfolio ranging from the majority of Forte Forte to the stakes in MSGM, Re/Done and LuisaViaRoma.
THE AGREEMENT WITH ADVENT INTERNATIONAL
Returning to today, the anticipations of a possible agreement with Advent International which, according to the Australian Financial Review had already presented itself with an unsolicited offer of 1.75 billion Australian dollars at the end of July, have materialized. The private equity fund has in fact acquired the majority of Zimmermann, which however will continue to be led by the sisters, who, together with the family and Style Capital, – specifies a note – will maintain "a significant minority stake".
“The value of the operation has not been revealed – writes MF Fashion – but, based on the results obtained in the last financial year and the forecasts for the current one, the label's valuation would be around 2 billion Australian dollars (1, 19 billion euros).
In the transaction, the sellers were assisted by Rothschild and Mediobanca.
ASIA AND MIDDLE EAST OBJECTIVE
The investment by Advent International, which has over 400 investments in international companies (predominantly in the technology sector), will allow Zimmermann to sustain growth, accelerating the international expansion of the brand in the main luxury markets where it is currently present and where will enter in the future, such as Asia and the Middle East, to further expand its offer of product categories and accessories and to strengthen the online and omni-channel distribution model.
The fund is also building on its recent investment in Parfums de Marly and Initio Parfums Prive's, as well as investments in Douglas, Orveon (owner of cosmetics brands bareMinerals, Buxom and Laura Mercier) and Lululemon (leading retailer of athleisure clothing and yoga).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/chi-ha-agguantato-il-brand-zimmermann/ on Tue, 08 Aug 2023 12:13:03 +0000.