In a significant move in the fashion industry, Advent has acquired the renowned Australian fashion brand, Zimmermann, in a deal estimated to be worth $1 billion. Although the exact financial details remain undisclosed, sources familiar with the situation have indicated that the brand’s valuation stands at approximately 14 times its core profit, translating to around $1.15 billion.
Zimmermann, boasting revenues of approximately $260 million and a commendable core profit margin exceeding 30%, is poised for a brighter future. This strategic investment by Advent is anticipated to catalyze Zimmermann’s expansion efforts, particularly in promising markets like Asia and the Middle East. Additionally, the partnership aims to enhance the brand’s distribution channels, with a keen focus on amplifying its digital presence.
In a collaborative statement, representatives from Advent, Zimmermann, and Style Capital highlighted the deal’s potential to accelerate Zimmermann’s growth trajectory. Notably, Style Capital, an Italian private equity firm with expertise in luxury brands and owner of labels such as Twin-Set, Sundek, and Golden Goose, along with the Zimmermann family, will retain a significant minority stake in the brand. This ensures that the brand’s legacy and vision remain intact, as the company will continue its operations under the leadership of its founders and the existing management team.
Zimmermann’s journey began in Sydney in 1991, founded by the visionary sisters, Nicky and Simone. Over the years, the brand has carved a niche for itself in the luxury ready-to-wear segment, and this new chapter with Advent promises to elevate its global stature even further.
