Advent acquires the design house Zimmermann
Private equity firm Advent has acquired a majority stake in clothing brand Zimmermann. The deal is worth US$1 billion. The founder’s family and Italian firm Style Capital previously owned the shares.
The parties are not disclosing details of the deal and its size, but one of the sources said that Advent offered 14 times the brand’s earnings. According to official figures, Zimmermann’s turnover was around US$260 million, so rough estimates put the value of the deal at just over US$1 billion.
The transfer under the management of the investment company will allow the Australian brand to accelerate its entry into new markets, including Asia and the Middle East. In addition, the company will use the new capital to expand its distribution network and to develop a digital solution for the business.
Overview of Zimmermann’s activities
Zimmermann is an Australian design house founded by the Zimmermann sisters. The brand’s range includes luxury clothing, footwear, accessories and swimwear. The company has 58 stores in Europe, the USA, China and Australia. In addition, Barney’s, Bergdorf Goodman, Harrods and many other boutiques around the world sell the brand’s products.
Nicki Zimmermann founded the brand in 1991 while studying at the School of Design in Sydney. While studying, she sewed her own outfits and sold them at fairs and markets. The products were successful, and Niki started her own business involving her sister Simone.
In 1992, the company opened its first store in Sydney, followed by others in other cities around the country. In 1996, the brand took to the catwalk for the first time in Australia, and since 2011, it has been a regular at New York Fashion Week. In 2022, the fashion house presented its collection for the first time at a similar event in France.
Initially, Zimmermann focused on two types of products – dresses and swimwear – but the range has become more diverse over time. The characteristics of the brand’s outfits are as follows:
– floral print;
– the use of ruffles and lace;
– embroidery elements and brocade inserts;
– diverse colour palette.
The brand has a preference for natural fabrics – silk, linen and others – and most of Zimmermann’s collections have a boho style. The company’s swimwear has become very popular. In 2014, it won an award for best design at Australian Fashion Week.
Zimmermann’s products have won many fashion awards. But it is its famous customers that have brought the brand worldwide fame. They include Beyoncé, the Hadid sisters, Taylor Swift, Paris Hilton and others.
