May 10, 2023
Style Capital believes the time has come to sell this asset. The deal is rumored to have entered preliminary discussions.
According to Italian media outlet MFFashion, Italian private equity fund Style Capital plans to sell Australian designer brand ZIMMERMANN.
In November 2020, Style Capital announced a strategic cooperation and investment with ZIMMERMANN to support the latter's global expansion, including developing retail markets focusing on Europe and Asia, promoting digital growth, expanding the wholesale business network, and expanding to new product types. Under the terms of the deal at the time, the original investor, General Atlantic withdrew.
After investing in Style Capital, ZIMMERMANN's annual sales have grown from 220 million Australian dollars to the current 400 million Australian dollars; EBITDA (earnings before interest, tax, depreciation, and amortization) It has risen from 40 million Australian dollars in 2020 to 105 million Australian dollars in 2022. This performance shows that the internationalization strategy formulated and implemented by Style Capital is successful.
MFFashion pointed out in the report that Style Capital's goal has been achieved, and now it is expected that the brand's sales in 2023 will exceed 500 million Australian dollars and EBITDA will reach 120 million Australian dollars. This expected performance also pushes the brand's expected valuation to A$2 billion, and in 2020, the brand's valuation will be A$500 million.
Style Capital believes the time has come to sell this asset. The deal is rumored to have entered preliminary discussions. Style Capital declined to comment.
The deal comes after Style Capital and the Paoloni family acquired an 80% stake in GDM Milano, the parent company of Italian fashion brand Giuseppe di Morabito.