In the latest fashion business news, Italian luxury group Ermenegildo Zegna have announced their impending status as a Publicly Listed Company (PLC) on New York’s Stock Exchange through a business agreement with Investindustrial Acquisition Corp.
The Zegna Family will retain control over a 62% stake in the business and see the new partnership as crucial to their future growth plans. As a merged entity, the group are expected to have an initial value of $3.2 billion, which CEO Ermenegildo ‘Gildo’ Zegna considers integral to the brand’s continued ability to adapt to new markets and support innovation.
“Over 111 years ago, my grandfather and namesake founded Zegna with the belief that caring for both the natural environment and for people was the bedrock for creating the finest textiles and a successful brand,” said the CEO. “Since then, we have proudly followed in his footsteps to become one of Italy’s true luxury houses.”
“Today’s announcement underscores the success of our strategy of continuously focusing on the Group’s brand equity while also continuing to build upon our heritage, our ethos of sustainability, and the unique craftsmanship that has made our name synonymous with quality and luxury around the world. The Zegna family will remain at the Company’s helm following the transaction’s completion, and we will continue to invest in creativity, innovation, talent, and technology in order to sustain Zegna’s leadership position in the global luxury market.”
While the Zegna brand remains the Group’s flagship label and a shining symbol of over 100 years expertise, their 2018 acquisition of Thome Browne demonstrated a hunger for growth and lateral integration. That move signaled a conscious re-orientation towards digital markets and younger clients, one which doubled Thome Browne’s revenues from 2018 onward and sparked a huge uptake in luxury leisurewear sales. With this year’s revenues expected to approach those of 2019 across its 296 stores in 80 countries, the agreement provides an indication of how major fashion brands intend to bounce back from the impacts of the pandemic.
GALLERYErmenegildo Zegna SS22