Advent Acquires Majority Stake in Luxury Brand Zimmermann


| LAST UPDATE 08/09/2023

By Tracy Morrison
luxury fashion Advent Zimmermann

In a striking move, private equity firm Advent International has secured a majority stake in the esteemed Australian fashion brand, Zimmermann. The deal, orchestrated with the founding family and Italy's Style Capital, sees the luxury brand valued at over a staggering one billion U.S. dollars.

The financial specifics remain undisclosed, yet insiders familiar with the matter have shed some light on the transaction. It's suggested that the brand, which boasts annual revenues of around $260 million and a robust core profit margin exceeding 30%, was valued at roughly 14 times its core profit. This translates to an approximate figure of $1.15 billion. This strategic acquisition by Advent is set to accelerate Zimmermann's expansion overseas, particularly in lucrative markets such as Asia and the Middle East. It will also enhance its distribution network, inclusive of its digital footprint.

Zimmermann luxury fashion business
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In a joint statement, Advent, Zimmermann, and Style Capital confirmed that the latter - an Italian private equity firm specializing in luxury brands - along with the Zimmermann family will maintain a significant minority stake. They reassured that the company will continue to operate under the guidance of its founders and existing management. Zimmermann, born out of the creative vision of sisters Nicky and Simone Zimmermann in Sydney in 1991, has cultivated a strong international presence over the past three decades. The brand is renowned for its high-end swimwear and refined floral prints, evocative of still-life artistry. Beyond its partnerships with top-tier luxury retailers worldwide, Zimmermann operates a chain of 58 standalone stores across Australia, the United States, the UK, Europe, and China. Its digital presence is equally impressive, marked by a well-curated website.

Advent, known for its interest in retail and consumer goods sectors, adds Zimmermann to its impressive portfolio. This includes sportswear brand lululemon, perfume labels Parfums de Marly and Initio Parfums Privés, beauty retailer Douglas, and cosmetics brands bareMinerals, BUXOM, and Laura Mercier. Advising the Zimmermann family and Style Capital throughout the deal were Mediobanca and Rothschild, further underscoring the significance of this fashion industry shakeup.

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