Zegna debuts in US public listing for $3.2b valuation

The centennial luxury house Zegna seeks investments to boost sales

Zegna debuts in US public listing for $3.2b valuation

Zegna debuts in US public listing for $3.2b valuation

With a history stretching over 100 years, the family-owned luxury fashion company Zegna gears up for investments to bolster the revenue.  The Italian fashion house hopes for a US-based SPAC (special-purpose acquisition company) with a $3.2b valuation in the United States by the network public listing. The company seeks investments to compete on a global platform as the industry slumped in the previous year.

On a global scale, the apparel market is most likely to flourish in the future. According to a forecast for 2020 and 2025, the growth could reach nearly 2.25 trillion dollars by 2025. The company finds the time appropriate to go public as the luxury fashion market has become quite challenging.

Zegna commenced its operations in 1910 in the textile industry and presently is a leader in luxury menswear with a vast retail network of over 500 stores in more than 100 countries worldwide. The company plans to raise $880 million with the United States. 

The European private equity group Investindustrial and Sergio Ermotti led the SPAC deal. The deal includes sales of a portion of Zegna’s holdings and has a controlling share of 62% in the joint venture of an equity value of $2.5 billion. The merger of Zegna and Investindustrial Acquisition Corp will offer an 11% stake of the Italian brand to the New York-listed entity.

The Italian market is known for its craftsmanship, intricate designs, and luxury brands that date back to the 11th century. The industry, therefore, is an integral part of the nation’s economy due to the manufacturing and export of fashion apparel and accessories. There has been a growth in the exports of Textile & Apparel Products in Italy from 4085.99 EUR Million in April of 2021 to 4301.20 EUR Million in May.

The country which has retail businesses in the most remote parts also had strong sales before the pandemic. But large and small boutiques saw a drop in sales of nearly 10.7 percent at the beginning of 2021 yet, online sales increased by 37.2 percent.

Other fashion brands remodeling the business to drive sales are Etro the luxury fashion house that lately got into a deal with L Catterton for global expansion offering the majority of its stakes.

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