Zimmermann sells stake to Italy’s Style Capital private equity

Australian luxury swim and ready-to-wear brand prepares for further international expansion with new deal.

Zimmermann is known for its luxury take on bohemian style.

Australian fashion label Zimmermann has sold an undisclosed stake of the business to Italian private equity fund Style Capital.

The next phase of growth for the company will focus on Asia and Europe.

In 2016, the 29-year-old brand sold a minority stake in the company to US growth equity firm General Atlantic, which it is understood to have sold to Style Capital.

Co-founders Nicky and Simone Zimmermann are said to be staying on as part of the new deal.

In a statement, Nicky Zimmermann said: “We are excited to partner with the team at Style Capital as we continue on our journey to build a unique global luxury brand from Australia. For Simone and I, Zimmermann has taken us to places that we never thought possible when we started.

“We are so excited by what lies ahead and look forward to working collaboratively with our new partners.”

Roberta Benaglia, chief executive of Style Capital, said that the new partnership was a “real privilege”.

“In recent years, I have followed the brand’s growth path with admiration, thinking how brave and talented these two Australian sisters have been in taking their luxury vision from Australia to the rest of the world. Our aim is to invest in talented people and their brands,” she said.

Adut Akech in Zimmermann 2021 Resort campaign. Picture: Romy Frydman

“Notwithstanding the difficulties of the pandemic, we have been impressed by the extraordinary strength and resilience of the company’s business model, as well as by the professional approach of the entire team. This partnership is confirmation of the confidence we have in the long-term growth potential of Zimmermann.”

It comes after speculation earlier this year that Australia’s most successful fashion brand was looking for new investors, having appointed Rothschild & Co and Allens to test the waters for interested parties.

A press report in March speculated that the sale was for 70 per cent of the company and valued at €250M.

There have been no financial terms released as to how much more of the company has been sold to Style Capital.

Zimmermann currently has 40 stores globally, split evenly between Australia and the US and Europe.

The company is on track to open new stores in Cannes and Rome in the first half of next year.

The transaction will close by the end of this year.

For more on Zimmermann, see Wish magazine’s 15th anniversary issue, out on Friday.