Ermenegildo Zegna Label changes name before IPO – WWD

MILAN Ahead of its IPO expected in December on the New York Stock Exchange, the Ermenegildo Zegna group is changing its name.

The men’s clothing brand will be known as Zegna and, celebrating the company’s family heritage and marking its new era, the logo will be updated in a new modern font.

The road becomes a key element and a symbol of the new logo, as it is inspired by the road 232 that the founder Ermenegildo Zegna built over 110 years ago in the mountains of northern Italy, Piedmont, around de Trivero where the company is based, planting half a million pines and creating the Oasi Zegna. Located a 90-minute drive from Milan, the Oasi offers views of the Alps, from the pyramid-shaped mountain of Monviso to the Monte Rosa massif.

The symbol of the Zegna road.
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The company, which is now run by Gildo Zegna, third generation of the family, as CEO, still draws inspiration from its founder and his values, as he has built a community around his woolen mill and developed a new type of ethical entrepreneurship.

The dual stripe signifier and new Zegna logo are set to be unveiled with a collection that launches on December 3, paying homage to the outdoors and winter sports, as well as the company’s roots in the mountains of Piedmont.

The symbol of the road, in a vicuña color that celebrates one of the most valuable fabrics used by Zegna, will be woven through each collection as a graphic representation. The group’s distribution network will display the new Zegna logo. The change is expected to be completed by 2022.

zegna

The new Zegna imagery.
courtesy image

As reported, in July Zegna announced that it was planning an initial public offering as part of a deal that is expected to give the fashion group a market cap of $ 2.5 billion. The Italian men’s clothing giant has entered into a business deal with Investindustrial Acquisition Corp., a special-purpose acquisition company sponsored by investment subsidiaries of Investindustrial VII LP.

The deal will allow Zegna to continue its global expansion and further develop its manufacturing pipeline through acquisitions. Gildo Zegna will retain his role as CEO and add that of President of the company. When the IPO plans were revealed, he reaffirmed his goal to “control the supply chain, get stronger and embed brands into our own culture and DNA and stay competitive.”

The Zegna family will continue to control the company with an approximate 62% stake. Investindustrial will hold 11 percent of the capital and 27 percent will be free float. Based on the value of the transaction, the merged entity will have an expected initial enterprise value of $ 3.2 billion.

The transaction is expected to generate gross proceeds of approximately $ 880 million, comprised of the $ 403 million in cash held in trust by IIAC, a fully committed private investment of $ 250 million in public shares, increased by $ 50 million. dollars given the strong demand from investors, and approximately $ 225 million in a purchase agreement with Strategic Holding Group Sàrl, an investment subsidiary managed independently of Investindustrial VII LP and subject to a blocking period of up to go up to three years.

As reported, the group was back in the dark in the first half of the year and after the impact of the COVID-19 pandemic last year.

During the six-month period ended June 30, Zegna recorded a profit of 32.2 million euros, compared to a loss of 87.8 million euros in the same period last year.

Driven by a solid performance in Greater China, revenue increased 49.9% to € 603.3 million, compared to € 402.4 million in the first half of 2020, with a slightly negative currency impact and an acceleration in revenues in the second quarter compared to the first quarter.

In the first half of the year, sales of the Ermenegildo Zegna brand increased by 36.1% to 465.9 million euros, compared to 342.3 million euros in the first half of 2020, despite traffic still below previous levels. COVID-19. Performance was driven by the direct-to-consumer channel primarily in the United Arab Emirates, United States and Greater China, as well as the wholesale channel.

Zegna acquired a majority stake in Thom Browne in August 2018 and sales of this label more than doubled to 142.6 million euros from 63.2 million euros in the first half of 2020.

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