Zimmermann inks deal with private equity firm Advent International
From starting out at a market stall in Sydney’s Paddington in 1991, sisters Nicky and Simone Zimmermann are approaching billionaire status.
With the confirmation that American private equity investor Advent International has acquired a majority shareholding in Australian fashion brand Zimmermann, the deal sees co-founders Nicky and Simone Zimmermann closing in on billionaire status.
Zimmermann is now officially Australia’s most successful fashion brand, and the Advent deal moves the sisters up The List – Australia’s Richest 250 after they made their debut this year with a then estimated wealth of $600m.
Under the terms of the agreement, 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), which together with the Zimmermann family will retain a significant minority shareholding.
Zimmermann will remain a close-knit Sydney-based family business with co-founders Nicky and Simone Zimmermann at the helm alongside chief executive Chris Olliver, while the existing Zimmermann management team will continue to drive the brand’s future growth locally and abroad.
While no party will confirm figures, reports have swirled that the deal is worth some $1.75bn to the brand. The announcement comes in the wake of Australian beauty brand Bondi Sands’ acquisition by Japanese cosmetics giant Kao Group (the Tokyo-listed firm owns Oribe, KMS and fragrance brand Molton Brown) last week for a reported $450m, and Aesop’s blockbuster sale to L’Oreal for $3.7bn in April. Investment in Camilla Franks’ Camilla resort wear brand, by Tattarang, the private investment group of Andrew and Nicola Forrest in January, generated similar headlines given the reported $42.5m deal to acquire a 25 per cent stake. And looking back, fashion commentators still remember the hype around sass & bide founders Heidi Middleton and Sarah-Jane Clarke’s 65 per cent deal with Myer in 2011 for $42m, before selling their remaining share for a reported $30m in 2013 and exiting a year later.
This deal shines the international spotlight on yet another Australian success story. Zimmermann was born at a humble Paddington Market stall in 1991 and now shows during the prestigious Paris Fashion Week.
“We are really excited to partner with the teams at Advent and Style Capital as we continue on our journey to build a unique global luxury brand from Australia,” says Nicky Zimmermann, chief creative officer and co-founder. “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.
“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.”
Zimmermann’s earnings are reportedly about $125m before interest, tax, depreciation and amortisation. The investment is expected to accelerate the 32-year-old brand’s international expansion into Asia and the Middle East, and to further grow product categories and accessories, while strengthening its omni-channel and digital presence.
“Zimmermann presents a rare and exciting opportunity to acquire a fast-growing iconic luxury fashion brand with significant potential for further expansion,” says Ranjan Sen, managing partner at Advent International. “The Zimmermann team have 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 chief executive, Chris Olliver, and Nicky and Simone … to help build on the company’s strong foundations and deliver superior continuous growth.”
Indeed, the brand is now a long way from the swimwear that first put it on the map internationally, with eveningwear now a star category globally as a go-to for wedding and event dressing thanks to the feminine, figure-flattering confections that capture the free spirit of the Australian lifestyle. In the lead-up to the brand’s first Paris fashion week show, Nicky Zimmermann told The Australian: “It’s our freshness, our sense of fun and optimism”, which she is exporting to Europe.
“Zimmermann’s strength lies in making clothes that are pretty and uncomplicated,” reported US style platform Vogue.com of the brand’s Paris runway debut last September. “You couldn’t attend a wedding this summer without encountering one of the brand’s flattering floral dresses on a guest.” That said, denim and suiting categories are now firing internationally alongside the label’s “destination” dresses.
The sisters will present their third collection on schedule next month at Paris Fashion Week after almost a decade showing in New York. “It’s a really exciting time in the trajectory of our brand,” Simone Zimmermann, chief operating officer and co-founder, tells The Australian. “The partnership with Advent is a significant endorsement of our long-term brand vision, as we continue to work hard at delivering considered collections for our clients and build our presence in new markets.”
Zimmermann’s global retail network includes 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 it has had a presence since 2019.
Olliver says of the Advent union: “We welcome Advent as a successful global and like-minded investor. They bring proven experience supporting luxury brands in taking this next step and we are thrilled by the opportunity to work together.”
Advent has more than 410 private equity investments across 42 countries with $95bn in assets under management. The 39-year-old firm is also behind Lululemon Athletica, Parfums de Marly and INITIO Parfums Privés, as well as Orveon (owner of the bareMinerals and Laura Mercier cosmetics brands). Advent typically invests in five core industries: business and financial services, healthcare, industrial, retail, consumer and leisure, and technology.
“We are delighted to partner with Advent and to continue to support the Zimmermann team,” says Roberta Benaglia, chief executive of Style Capital, whose portfolio features accessory and apparel brands Golden Goose, MSGM and Re/Done. “Early in our conversations with the Advent team, it became clear that they recognised the considerable potential within the brand and shared a common vision for further expansion over the long term.”
And, while the sisters have remained tight-lipped about the specifics of the Style Capital deal, Nicky Zimmermann’s previous comments to The Australian confirmed the union has been a productive partnership: “What is so great is that we’re able to do things how we want to do them. Obviously, it’s worked, so nobody wants to mess with that. And I think for the business it is really important that we enjoy it and that we love it. It’s because of the businesses capabilities that I’m able to have these kinds of resources and hopefully continue to get better at what I do and keep learning. But honestly, I love it. As a very young kid it was all I wanted to be. The fact that this has happened is well and truly beyond my wildest dreams, without a doubt.”
All sides are reportedly very happy with this latest acquisition, which will further propel that vision forward. And as for their continued currency at home, she reflected: “Australian women have come on the journey with us. We’ve evolved, our customer has evolved. I think one of the things that has worked for us is when I want to move on, so does our customer. And I’m very confident with that. Australian women, they’re adventurous, they’re fun, and they don’t want the same thing.”
Fuelling this forward focus is something this deal will no doubt deliver.