Advent buys Australian fashion brand Zimmermann
Advent International has agreed to acquire a controlling interest in Australia-headquartered fashion brand Zimmerman, facilitating a partial exit for Italy-based private equity firm Style Capital.
The size of the deal was not disclosed, but Bloomberg reported that it valued the company at approximately USD 1bn. Style Capital acquired a 69.7% stake in Zimmerman in 2021, taking out General Atlantic, a minority shareholder in the company since 2016. Following Advent’s arrival, Style Capital and the Zimmerman family will retain minority interests.
Advent is currently deploying GPE X, its latest global flagship fund, which closed on USD 25bn in May 2022. Europe and North America have historically accounted for at least 80% of the firm’s funds. The Asia portion has tended to focus heavily on China and India. Advent’s last deal in Australia prior to Zimmerman was Westco Jeans in 1999.
Zimmerman was founded by sisters Nicky and Simone Zimmermann in 1991. They carved a market niche by fusing fashion with swimwear and now the company offers a wider range of ready-to-wear swim and resort collections. It has 58 standalone stores across Australia, the US, the UK, Europe, and China as well as an online platform. There is also limited distribution through department stores and boutiques.
Style Capital, which specialises in fashion and luxury investments, backed Zimmerman with a view to supporting geographic expansion, especially in the European and Asian retail markets, and developing digital and wholesale channels. At the time, the company had 41 standalone stores, with China absent from the global footprint.
Advent has also highlighted the potential of existing and new key luxury markets, such as Asia and the Middle East. It also wants to grow Zimmerman’s product categories and accessories and strengthen the company’s omnichannel presence. The private equity firm has made numerous relevant consumer investments globally, from Parfums de Marly to Lululemon Athletica.
“Zimmerman presents a rare and exciting opportunity to acquire a fast-growing iconic luxury fashion brand with significant potential for further expansion. The Zimmermann team have successfully created a distinctive and desirable global luxury brand, which has built a loyal customer base around the world,” said Ranjan Sen, a managing partner at Advent, in a statement.
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