Advent Buys Australian Fashion Brand Zimmermann in $1bn Deal

Private equity firm Advent International has bought a majority stake in Australian fashion brand Zimmermann from the founding family and Italian fund Style Capital, it said.

While the financial terms of the deal were not disclosed, two people close to the matter said the transaction valued the brand at around 14 times its core profit – meaning more than 1 billion U.S. dollars.

Zimmermann has revenue of some $260 million and a more than 30% core profit margin, the people said.

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The investment by Advent will allow Zimmermann to speed up expansion abroad including in Asia and the Middle East, and boost its distribution network, including the digital offer.

Founded in Sydney in 1991 by sisters Nicky and Simone Zimmermann, the brand has grown in the last three decades to gain international recognition for its luxury swimwear and sophisticated floral prints reminiscent of still-life paintings.

In addition to selling its clothing through some top luxury retailers globally, Zimmermann runs a network of 58 of its own stores in Australia, the United States, the UK, Europe and China. It also operates its own website.

Retail and consumer goods are two of the sectors targeted by Advent, whose company portfolio includes sports clothing maker Lululemon, perfume brands Parfums de Marly and Initio Parfums Privés, beauty retailer Douglas and make-up brands bareMinerals, BUXOM and Laura Mercier.

Mediobanca and Rothschild advised Style Capital, an Italian private equity firm that specialises in luxury brands and owns labels such as Twin-Set, Sundek, and Golden Goose.

Source: Reuters

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