Advent buys Australian fashion brand Zimmermann in $1 billion deal

Advent buys Australian fashion brand Zimmermann in $1 billion deal

AUGUST 8TH, MILAN – (This August 8 story has been Advent buys Australian fashion corrected to clarify that holding in Golden Goose is historical, not current, in paragraph 5)

According to sources, Advent International, a private equity firm, has acquired the majority of Zimmermann from the founding family and Italy’s Style Capital in a deal that values the Australian clothing company at more than $1 billion USD.

While the financial terms were not disclosed, two people close to the matter said the transaction valued the brand at around 14 times its core profit – meaning around $1.15 billion.

Zimmermann has revenue of some $260 million and a more than 30% core profit margin, the people said.

The investment by Advent buys Australian fashion will allow Zimmermann to speed up expansion abroad including in Asia and the Middle East, and boost its distribution network, including the digital offer, Advent, Zimmermann and Style Capital said in a joint statement.

Style Capital – an Italian private equity firm that specialises in luxury brands

And has over time owned labels such as Twin-Set, Sundek and Golden Goose. The Zimmermann family will retain a relevant minority stake. They said, adding that the company will continue to be run by its founders and current management.

Founded in Sydney in 1991 by sisters Nicky and Simone Advent buys Australian fashion Zimmermann. The brand has grown in the last three decades to gain international recognition for its luxury swimwear. And sophisticated floral prints reminiscent of still-life painting.

Advent buys Australian fashion.

In addition to selling its clothing through some top luxury retailers globally. Zimmermann runs a network of 58 of its own stores in Australia, the United States, the UK, Europe and China. Additionally, it runs its own website.

Advent buys Australian fashion targets the retail and consumer goods industries. Its portfolio of businesses includes the athletic apparel maker lululemon, the perfume companies Parfums de Marly and Initio Parfums Privés. The beauty retailer Douglas, and the cosmetics companies bareMinerals, BUXOM, and Laura Mercier.

Advent buys Australian fashion

The Zimmermann family and Style Capital received advice on the transaction from Mediobanca and Rothschild.

Private equity firm Advent International has acquired a controlling interest in Zimmermann from both the founding family and Italy’s Style Capital.

According to insiders, the transaction values the Australian fashion brand at more than $1 billion.

Advent’s investment in Zimmermann is indicative of its growing interest in the retail and consumer goods domain. The company has previously made investments in various well-known brands. These include lululemon, celebrated for its sports clothing;

Fragrance brands Parfums de Marly and Initio Parfums Privés;

And involvement with beauty retailer Douglas, along with makeup labels such as bareMinerals, BUXOM, and Laura Mercier. While the specific financial details were not made public, two individuals familiar with the situation indicated that the deal valued the brand at approximately 14 times. Its fundamental earnings, equating to approximately $1.15 billion.

Zimmermann reportedly generates around $260 million in revenue and maintains a core profit margin exceeding 30%, as per the sources.

Advent’s investment is poised to accelerate Zimmermann’s international growth, particularly in Asia and the Middle East. Additionally, it will enhance the brand’s distribution network, encompassing its digital offerings.

This strategic move was highlighted in a collaborative statement from Advent.

Style Capital, an Italian private equity company with expertise in luxury brands and ownership of labels like Twin-Set, Sundek, Golden Goose. And the Zimmermann family, will maintain a minority share. Founders and existing management will also continue to oversee the company’s operations.

Established in Sydney back in 1991 by siblings Nicky and Simone Zimmermann. The brand has evolved over the past thirty years to achieve global prominence. Its opulent swimwear and refined floral patterns reminiscent of classic still-life artwork.

Beyond distributing its apparel through esteemed luxury vendors worldwide,. Zimmermann today operates 58 proprietary boutiques located across Australia, the United States, the U.K., Europe, and China. It also maintains an independent online platform.

Mediobanca and Rothschild advised the Zimmermann family and Style Capital on the sale.

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