Fashion

Ermenegildo Zegna Announces Plans to Go Public in $3.2 Billion SPAC Deal

"The Zegna family will remain at the company's helm following the transaction's completion."
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Ermenegildo Zegna announced its plans to go public on Monday. By combining with special purpose acquisition corporation Investindustrial Acquisition Corp., the merged entity will have an anticipated initial enterprise value of $3.2 billion and a market cap of $2.5 billion.

According to a release, the Zegna family will retain control with a stake of approximately 62 percent. The deal, which is expected to deliver $880 million, will support Zegna's continuing growth plans. Read Zegna Group CEO Ermenegildo "Gildo" Zegna's full statement below.

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. 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.

"For over thirty years, Investindustrial has invested in and supported both growing and leading Italian brands," said Andrea C. Bonomi, founder of Investindustrial and Chairman of the Industrial Advisory Board. "We believe in the strength of Made in Italy, which has always been recognized worldwide for quality, craftsmanship, and innovation."

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He continued, "With Zegna, we identified a group that also includes both a strong family heritage and a leading position in sustainability—one of the pillars in Investindustrial's investment strategy. We are supporting the Zegna Group with a long-term commitment and a significant investment to back the Company's ongoing expansion and growth, with the goal of spreading Zegna's unparalleled heritage and luxury craftmanship more broadly to customers around the world."

Zegna made headlines when it acquired Thom Brown in 2018. And, the successful acquisition could lead to more similar deals in the future if all goes to plan.

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Paolo Chua
Paolo Chua is the Associate Style Editor of Esquire Philippines.
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