Ermenegildo Zegna took a major step onto the US public stock market today, July 19. The Italian luxury fashion house declared that it would gain a listing on the New York Stock Exchange by merging with a SPAC or a publicly-traded acquisition fund.
We find this news about the famous Italian luxury brand worth sharing with our readers, especially fans of fashion and luxury products. We think it will help them learn about the latest important trends in the fashion business.
According to the report posted online by the US daily newspaper based in New York City, The New York Times, the founders of Ermenegildo Zegna opened the company for business in 1910. The firm’s initial location was Northern Italy’s foothills.
Ermenegildo Zegna commenced as a family-run maker of wool fabrics. Today, it is an international luxury fashion house that also owns the Thom Browne brand.
Furthermore, Ermenegildo Zegna’s method of pursuing more resources to grow its operations is a novel one. SPAC is short for ‘special purpose acquisition company.’
This fund raised in the stock markets like the New York Stock Exchange is solely for the purpose of merging with a privately-held firm and providing it with a stock listing. Additionally, over the past two years, such funds had exploded in popularity for permitting business establishments to join stock markets faster than via a conventional initial public offering or IPO.
The fund by European investment company Investindustrial is merging with Ermenegildo Zegna. The deal is anticipated to value the latter at approximately $3.2 billion, including debt obligations.
Moreover, the SPAC deal will reportedly provide Ermenegildo Zegna roughly US$880 million in fresh cash while letting its founding family keep about 62-percent stake. It is anticipated to close by the end of 2021, pending approval by the SPAC’s shareholders.
Ermenegildo “Gildo” Zegna, the company founder’s grandson and current chief executive officer, remarked in a statement that they would carry on investing in technology, creativity, talent, and innovation.
He said that in this manner, they would be able to sustain the Italian luxury fashion brand’s leadership position in the international luxury market. Meanwhile, Sergio Ermotti cited that their objective now is to support Ermenegildo Zegna in this significant new chapter in its history.
The Investindustrial SPAC’s chairman also said that they would perform this step while opening the public to the chance of investing in one of the world’s final, great iconic independent luxury brands.
We want to congratulate Ermenegildo Zegna and Investindustrial for their latest SPAC deal. We know that the former is a top-tier maker of men’s fabrics and suits for much of its existence.
We believe that through Ermenegildo Zegna listing in the New York Stock Exchange, it would continue expanding, reaching more fashionable clients in over 80 nations. We also think it would grow more profits-wise, and more fashion-savvy customers worldwide will get to relish its high-end offerings in the long run.