Zimmermann aquired by Advent International
Nicky and Simone Zimmermann will remain at the helm of their Australian fashion brand after Advent International acquires a major stake
The rumours have been circulating for weeks, but today The Australian can confirm that American private equity investor Advent International has reached an agreement to acquire a majority shareholding in Australian fashion brand Zimmermann.
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.
Founders Nicky and Simone Zimmermann alongside chief executive Chris Olliver and the Zimmermann management team will continue to drive the brand’s future growth both locally and abroad.
While no party will confirm figures, reports have swirled that the deal is worth some $1.75 billion to the brand. The announcement comes in the wake of Australian beauty brand Bondi Sands’ acquisition by Japanese cosmetics giant Kao Group last week for $450m and Aesop’s sale to L’Oreal for $3.7 billion in April. This deal shines the international spotlight on another Australian success story; the brand was born at a Paddington Market stall in 1991 and now shows during 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,” said 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.”
The investment is expected to accelerate the 32-year-old brand’s (reported to make around $125 million in earnings before interest, tax, depreciation and amortisation) 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,” said 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.”
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 currently 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 the brand has had a headquarters since 2019.
Chris Olliver, Zimmermann chief executive added 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 over 410 private equity investments across 42 countries with $95 billion in assets currently 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,” said Roberta Benaglia, chief executive of Style Capital whose portfolio features 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 comments to The Australian on the eve of her first Paris Fashion Week show last year confirmed that 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.
