Luxury brand Ermenegildo Zegna to become a public company

Luxury menswear brand Ermenegildo Zegna plans to become a publicly traded company on the New York Stock Exchange.

The century-old, family-controlled business said Monday it will go public via a blank-check company run by the European investment firm Investindustrial, which is providing the company with $880 million in cash to pursue acquisitions.

The deal will value the company at about $3.2 billion including debt and the Zegna family will continue to run the business, retaining a 62-percent stake, according to reports.

Chief executive Gildo Zegna, who is the grandson of the founder, said the company “wants to consolidate,” signaling that the company is eyeing an acquisition spree in the luxury niche, according to a New York Times report citing a call with journalists Monday morning.

In 2018, Zegna acquired the Thom Browne label.

A fashion show featuring men in winter clothing.
The luxury, Italian brand bought Thom Browne in 2018.
AFP via Getty Images

It said it also needs capital to expand its footprint, which includes 300 stores globally.

The company has two stores in the Big Apple, including in Brookfield Place in lower Manhattan and one at  4 West 57th St. where the company sell $450 jeans, $750 suede sneakers and $345 short sleeve cotton polo shirts.

“Today’s announcement underscores the success of our strategy of continuously focusing on the group’s brand equity while also continuing to build upon our heritage, our ethos of sustainability, and the unique craftsmanship that has made our name synonymous with quality and luxury around the world,” Zegna said in a statement. 

A window display at a Ermenegildo Zegna store.
The Zegna family retain a majority stake in the company.

“Our goal now is to support Zegna in this important new chapter of its history while opening the opportunity to the public to invest in one of the last great iconic independent luxury brands,” Sergio Ermotti, chairman of the Investindustrial SPAC, said in a statement.

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