Dive Brief:
- Advent International announced today that it has agreed to buy a majority share in luxury fashion brand Zimmerman, according to a statement.
- Under the terms of the acquisition, Zimmermann’s previous financial partner Style Capital, along with the Zimmermann family, will keep a significant minority share. Founding sisters Nicky and Simone Zimmermann will join the brand’s management team in continuing to drive future growth, per the release.
- Zimmermann partnered with Style Capital in 2020. As part of that arrangement, the brand’s previous partner, global growth equity firm General Atlantic, exited its holding in the company after having acquired a minority stake in 2016.
Dive Insight:
Financial details of the Advent deal were not disclosed. However, earlier this year Australia’s Financial Review reported that Zimmermann employed 900 people and had a revenue of $220 million as of its last results in 2020.
“ZIMMERMANN presents a rare and exciting opportunity to acquire a fast-growing iconic luxury fashion brand with significant potential for further expansion,” Ranjan Sen, managing partner at Advent International, said in the release. “The ZIMMERMANN team have successfully created a distinctive and desirable global luxury brand, which has built a loyal customer base around the world.”
The investment from New York-based Advent is meant to help Zimmermann accelerate its international expansion in existing and new key luxury markets, such as Asia and the Middle East, according to the statement. Advent also said it wanted to further grow Zimmermann’s product categories and accessories and strengthen the brand’s online and omnichannel presence.
Advent, a private equity firm founded in 1984, has $95 billion in assets under management, per the statement. Its fashion and beauty sector investments include lululemon; Orveon, which owns bareMinerals, Buxom and Laura Mercier; and a recent partnership with Parfums de Marly and INITIO Parfums Privés.
Founded as a resort and swim collection in 1991, the Zimmermann label has since expanded to include women’s ready-to-wear, childrenswear, accessories, jewelry and footwear. The brand has 58 standalone stores throughout the U.S., Australia, the U.K., Europe and China, as well as an online store and a wholesale division that sells to international department stores and independent and online retailers.
“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,” Nicky Zimmermann, the brand’s chief creative officer, said in the release. “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.”
