US private equity investor Advent International has acquired a majority stake in luxury fashion label Zimmermann from Style Capital.
The price has not been disclosed, but Reuters quoted two people close to the matter who said the transaction valued the brand at around 14 times its core profit – meaning more than $1.53 billion (US$1 billion).
Zimmerman is said to have an annual turnover of $400 million with a 30 per cent core profit margin.
The deal comes about three years after Style Capital bought 70 per cent stake in the brand from General Atlantic for A$408 million. The Australian womenswear brand, founded by sisters Nicky and Simone Zimmermann in 1991 in Sydney, currently has 58 stores across China, Australia, the US, the UK and Europe.
Both Style Capital and the Zimmerman sisters will retain significant minority interests in the business, Advent said in a statement.
Advent said the investment will allow Zimmermann to speed up expansion abroad – including in Asia and the Middle East – and boost its distribution network, including online.
“Zimmermann presents a rare and exciting opportunity to acquire a fast-growing iconic luxury fashion brand with significant potential for further expansion,” said Ranjan Sen, managing partner at Advent.
“The Zimmermann team has successfully created a distinctive and desirable global luxury brand, which has built a loyal customer base around the world. We look forward to supporting the management team around the CEO, Chris Olliver, and Nicky and Simone Zimmermann, to help build on the company’s strong foundations and deliver superior continuous growth.”
“There are so many exciting opportunities for Zimmermann ahead and Simone and I feel extremely fortunate to be going on this journey with our team – one that started nearly 30 years ago at Paddington Markets in Sydney,” said Nicky Zimmermann.
“For us, the opportunity to work alongside so many talented and passionate people each day is a privilege and there is so much we want to achieve together. We look forward to working collaboratively with our new partners to achieve our shared ambitions for the brand, with our loyal clients at the centre of that vision.”
Advent specialises in retail and consumer business sectors and has investments in Lululemon, perfume brands Parfums de Marly and Initio Parfums Privés, beauty retailer Douglas and make-up brands bareMinerals, Buxom and Laura Mercier.
