Why is the historic Ermenegildo Zegna going public after 111 years? The Italian fashion brand will list shares on the New York Stock Exchange in a US$3.2 billion SPAC deal
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Ermenegildo Zegna is listing its shares via a US$3.2 billion deal with a blank-check company, letting the Italian fashion house join other luxury brands tapping investor cash while keeping the founding family in control.
Zegna said Monday, July 11, that it will raise US$880 million by combining with Investindustrial Acquisition Corporation, a special-purpose acquisition company whose chairman is Sergio Ermotti, former chief executive officer of UBS Group AG. The Zegna family will control 62 per cent of the combined entity and the shares will trade on the New York Stock Exchange.
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“The timing is perfect, the luxury business is getting very challenging,” Gildo Zegna, CEO and grandson of the founder, said on a call with reporters. “This will create new opportunities in the future,” with the backing of “supportive partners”.
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Listing in the US will also provide Zegna more visibility, Andrea Bonomi, the founder of Investindustrial, said on the call. The investment company will own an 11 per cent stake, while the remaining 27 per cent will be traded on the market.
Originally founded as a fabric maker in 1910 by Ermenegildo Zegna in Trivero, Italy, the company went on to become a well-known luxury menswear brand under the third and fourth generations of the Zegna family.