Italian luxury house Ermenegildo Zegna will go public on the New York Stock Exchange later this year as part of a tie-up agreement with special purpose acquisition corporation Investindustrial Acquisition.
The family-owned company and the Spac said on 19 July that the combined entity will have an enterprise value of $3.2bn and a market capitalization of $2.5bn, as part of the deal agreed on 18 July.
The combination of stock and cash financing should bring in around $880m in gross proceeds, and the transaction is expected to close by the fourth quarter of 2021.
“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,” chief executive Gildo Zegna said.
The Zegna family will continue to control the company with a stake of about 62%.
The luxury goods sector is recovering from the damage it suffered due to the coronavirus pandemic as economies reopen after months of restrictions and lockdowns.
Zegna expects sales will approach 2019 levels this year. The group had a presence in 80 countries through 296 directly operated stores as of the end of 2020.
Write to Mauro Orru at [email protected]
This article was published by Dow Jones Newswires