Zimmermann sisters cash in with part sale of fashion house to US investor

Sydney sisters Nicky and Simone Zimmermann have sold a major stake in their fashion brand, in a move set to see them rise up the ranks of Australia’s richest people.

Homegrown Australian fashion house Zimmermann began as a stall more than 30 years ago in Paddington market in Sydney’s inner east. Now the sisters who founded it will cash in with a sale to quickly rise up the ranks of Australia’s richest people.

Sisters Nicky and Simone Zimmermann will zoom up the ranks of Australia’s most wealthiest people after a large stake in their fashion label Zimmermann was sold to a US investor in a deal that values the fashion at house at about $1.75bn.

It was revealed on Tuesday by fashion bible Vogue Australia that private equity investor Advent International had reached an agreement to acquire a majority shareholding in the Zimmermann brand.

Under the terms of the deal, Advent will acquire a majority shareholding from Style Capital (which acquired 70 per cent of the brand in 2020 in a transaction reportedly valued at $446m), who together with the Zimmermann family, will retain a significant minority shareholding.

Nicky and Simone Zimmermann.

The sale marks a fresh turning point, as well as sky-high valuation, for the Zimmermann brand that started its fashion life at a Paddington Market stall in Sydney in 1991 and now which has boutique shops across Europe and which has featured during Paris Fashion Week.

The label’s feminine aesthetic – prints and ruffles abound – has found favour with everyone from Catherine, Princess of Wales, to Beyoncé.

From Paddington it has spread with Zimmermann’s global retail network including 22 stores in Australia, two in China and 22 boutiques across America, with momentum building throughout Europe to total 58 stores globally. This expansion also includes Zimmermann’s new Paris head office under construction in the first arrondissement, where the brand has had a headquarters since 2019.

For the sisters, Nicky and Simone, it will drag them higher up the rankings of Australia’s richest individuals. This year after more than 32 years when that Paddington market stall was opened, the Zimmermann’s debut on The List - Australia’s Richest 250 as compiled by The Australian - with a $600m fortune.

“We have never had anyone to follow, so we have always had to forge our own path, and that has been good for us,” Nicky Zimmermann told WISH magazine in a December 2020 interview commemorating the brand’s then 30th anniversary.

That same year, the Milan-based company Style Capital bought a 70 per cent stake in the business, reported to be worth around $446m at the time.

Australian designer Nicky Zimmermann at Paris Fashion Week in 2022. Picture: Xavier Schwebel

It is believed that Zimmermann books around $125m in earnings before interest, tax, depreciation and amortisation with the new investors expected to look to international expansion into Asia and the Middle East, and to further grow product categories and accessories, while strengthening its omni-channel and digital presence.

Founders, the Zimmermann sisters, alongside chief executive Chris Olliver and the Zimmermann management team will continue to drive the brand’s future growth both locally and abroad as it expands into new markets.

While no sales or valuation figures have been released as part of the sale to Advent, reports have put the deal as valuing Zimmermann at around $1.75bn.

It has been a big year for Australian consumer brands attracting hefty sales prices and deals as foreign consumer giants pick up local success stories.

Last week Australian beauty brand Bondi Sands was acquired by Japanese cosmetics giant Kao Group for $450m and Australian created skincare brand Aesop’s was sold to L’Oreal for $3.7 billion in April.