Zimmermann Sells Majority Stake to Introduction Worldwide – WWD

Zimmermann, the recent Australian luxurious model, has modified fingers once more.

Introduction Worldwide, one of many world’s largest non-public fairness buyers, has reached an settlement to amass a majority stake within the firm. Phrases of the transaction weren’t disclosed.

Based by sisters Nicky and Simone Zimmermann in 1991 and headquartered in Sydney, Australia, Zimmermann has established a loyal following for its female attire and swimwear that emphasize unique prints and colour. The corporate has 58 stand-alone shops throughout Australia, the U.S., the U.Ok., Europe and China, together with wholesale distribution in division and specialty shops, on-line luxurious vogue retailers and Zimmermann.com.

Underneath the phrases of the acquisition, Introduction will purchase a majority stake in Zimmermann from Type Capital, which along with the Zimmermann household will retain a major minority shareholding. The founders and the Zimmermann administration crew will proceed to drive the model’s progress.

Studies within the Australian Monetary Evaluation final month a couple of potential Introduction acquisition valued Zimmermann at 1.75 billion Australian {dollars}, or $1.15 billion at present trade.

Type Capital, the Milan-based funding fund, acquired a 70 p.c stake in Zimmermann in late 2020 for a reported 408 million Australian {dollars}, or $268.12 million at present trade, with the Zimmermann household proudly owning 30 p.c. As a part of that transaction, American non-public fairness agency Common Atlantic, which had acquired a minority stake within the model in 2016, exited the Australian firm.

Whereas Zimmermann declined to disclose its present quantity, final yr the corporate mentioned that international topline gross sales elevated a median of simply over 30 p.c annually over the previous 5 years. Business sources have estimated Zimmermann’s annual income at 400 million Australian {dollars}, or $263 million at present trade, and 125 million Australian {dollars}, or $82.2 million, in earnings earlier than curiosity and taxes.

On the time of Type Capital’s acquisition, the corporate mentioned its technique was to assist Zimmermann’s international trajectory with a concentrate on European and Asian retail markets; digital progress; growing its wholesale footprint, and increasing into new classes.

Type Capital’s portfolio contains L.A.-based denim model Re/Executed and two Italian labels, Forte Forte and MSGM.

The funding from Introduction seems to take that technique additional, permitting Zimmermann to construct on its robust multidecade efficiency by accelerating the model’s worldwide enlargement in present and new key luxurious markets, similar to Asia and the Center East; to additional increase its product classes and equipment, and strengthen its on-line and omnichannel presence.

Introduction, established in 1984 with $95 billion in property below administration, seeks to leverage its appreciable expertise inside the client sector, which incorporates the June 2023 funding in Parfums de Marly and Initio Parfums Privés, in addition to the 2012 funding in Douglas, the Germany-based specialty retailer of premium magnificence merchandise, together with perfumes; Orveon, proprietor of the BareMinerals, Buxom and Laura Mercier cosmetics manufacturers acquired in 2021, and Lululemon Athletica, which Introduction initially invested in in 2005. Introduction first made a minority funding of $74 million in Lululemon, which went public, and by 2009 had offered all its shares, reportedly making about $600 million on its funding. Introduction then made one other funding in Lululemon in 2014.

Introduction additionally purchased Olaplex in 2019 earlier than it spun it out in an preliminary public providing in 2021, giving the sweetness firm a reported valuation of $16 billion on the time, as reported.

In revealing the Zimmermann information, Ranjan Sen, managing accomplice at Introduction Worldwide, mentioned, “Zimmermann presents a uncommon and thrilling alternative to amass a fast-growing iconic luxurious vogue model with vital potential for additional enlargement. The Zimmermann crew has efficiently created a particular and fascinating international luxurious model, which has constructed a loyal buyer base all over the world. We stay up for supporting the administration crew across the CEO, Chris Olliver, and Nicky and Simone Zimmermann, to assist construct on the corporate’s robust foundations and ship superior steady progress.”

Olliver added, “We welcome Introduction as a profitable international and like-minded investor. They convey confirmed expertise supporting luxurious manufacturers in taking this subsequent step and we’re thrilled by the chance to work collectively.”

Nicky Zimmermann, chief artistic officer and cofounder, mentioned, “We’re actually excited to accomplice with the groups at Introduction and Type Capital as we proceed on our journey to construct a singular international luxurious model from Australia. There are such a lot of thrilling alternatives for Zimmermann forward and Simone and I really feel extraordinarily lucky to be occurring this journey with our crew, one which began practically 30 years in the past at Paddington Markets in Sydney. For us, the chance to work alongside so many proficient and passionate folks every day is a privilege and there may be a lot we need to obtain collectively. We stay up for working collaboratively with our new companions to realize our shared ambitions for the model, with our loyal shoppers on the middle of that imaginative and prescient.”

Roberta Benaglia, CEO of Type Capital, added, “We’re delighted to accomplice with Introduction and to proceed to assist the Zimmermann crew. Early in our conversations with the Introduction crew, it grew to become clear that they acknowledged the appreciable potential inside the model and shared a typical imaginative and prescient for additional enlargement over the long run.”

Since its institution in 1984, Introduction has invested in additional than 410 non-public fairness investments throughout 42 nations. The agency focuses on investments in 5 core sectors — enterprise and monetary companies; well being care; industrial; retail, client and leisure, and know-how.

Arguably certainly one of Australian vogue’s largest success tales, Zimmermann started in Sydney with Nicky Zimmermann designing attire and promoting them at Paddington markets. After getting two pages of editorial in Australian Vogue, she began to obtain orders for the attire from boutiques round Australia and opened a small retailer in Darlinghurst. In 1991, her sister Simone, cofounder and chief working officer, joined the corporate, and collectively they started constructing the model. Zimmermann’s attire grew to become recognizable for his or her flowy chiffon materials, use of ruching, tulle, colours and prints. Over time, their fan base has grown to incorporate fellow Aussie Margot Robbie, Kendall Jenner, Katie Holmes, Laura Dern, Beyoncé and Kate Middleton.

Right now, Zimmermann has been aggressively opening freestanding shops all over the world, with 22 shops within the U.S., 20 in Australia and 14 within the U.Ok. and E.U.. Within the U.S., shops are in such places as SoHo, Meatpacking District, Madison Avenue, East Hampton, Southampton, and Americana Manhasset in New York; Atlanta; the Miami Design District, Bal Harbour and Palm Seashore in Florida; Dallas and Houston in Texas; Honolulu; Melrose Place in Los Angeles, and San Francisco. Internationally shops have popped up in cities similar to London; Paris, Cannes and Saint-Tropez in France; Milan, Florence and Capri in Italy; Madrid; and Shanghai.

Zimmermann’s merchandise run the gamut from ready-to-wear, together with attire, knitwear, denim, skirts, pants, tops, outerwear, jumpsuits, and T-shirts, to swimwear, sneakers, equipment, jewellery and youngsters’.