Advent International Acquires Australian Fashion Brand Zimmermann in $1 Billion Deal

Private Equity Firm Advent International Purchases Majority Stake in Zimmermann, Expanding the Brand's Global Reach and Distribution Network

Advent International, a prominent private equity firm, has successfully completed the acquisition of a majority stake in the renowned Australian fashion brand, Zimmermann. The deal, estimated to be worth over $1 billion USD, marks a significant move for both parties involved.

Sources with knowledge of the matter have revealed that the transaction values Zimmermann at an impressive 14 times its core profit, indicating a valuation of approximately $1.15 billion. The brand, celebrated for its luxury swimwear and elegant floral prints reminiscent of still-life artwork, has garnered international acclaim since its inception in 1991 by sisters Nicky and Simone Zimmermann.

The strategic investment by Advent International is poised to accelerate Zimmermann's global expansion initiatives, particularly in burgeoning markets like Asia and the Middle East. This move will also bolster the brand's distribution network, with a strong focus on enhancing its digital presence. A joint statement issued by Advent International, Zimmermann, and Style Capital, an Italian private equity firm specializing in luxury brands, underlines the collaborative vision for the brand's growth.

While Advent International assumes a majority stake, Style Capital and the Zimmermann family will retain a pertinent minority stake in the brand. The continuity of leadership is emphasized, as the company will continue to be led by its founders and current management. With a robust revenue of approximately $260 million and an impressive core profit margin exceeding 30%, Zimmermann is well-positioned for a new phase of expansion and innovation.

The brand's established presence extends globally through an array of luxury retailers and a network of 58 proprietary stores across Australia, the United States, the UK, Europe, and China. Additionally, Zimmermann operates a robust online platform, showcasing its exquisite range of offerings.

Advent International's investment approach aligns with its portfolio of successful ventures, which includes notable names in the retail and consumer goods sectors such as lululemon, Parfums de Marly, Douglas, and bareMinerals. The acquisition of Zimmermann further reinforces Advent's commitment to these sectors and its dedication to driving growth and innovation.

The deal was advised by Mediobanca and Rothschild, serving as advisors to both the Zimmermann family and Style Capital, affirming the strategic significance of this acquisition. Reporting by Valentina Za and Giulio Piovaccari, with editing by Eileen Soreng and Kirsten Donovan, highlights the importance of this development within the fashion and investment landscape.