After Private Equity Takeover, Zimmermann Emerges as Australia's First Billion-Dollar Fashion Brand
Zimmermann Achieves Milestone as Australia's First Billion-Dollar Fashion Label Following Private Equity Acquisition
Australian fashion powerhouse Zimmermann has achieved a historic milestone by becoming the country's inaugural billion-dollar fashion brand, courtesy of a majority acquisition by prominent private equity firm Advent International.
The renowned fashion label's co-founders, the Zimmermann sisters Simone and Nicky, have chosen to retain a minority stake in the company, emphasizing their commitment to maintaining active roles in its management alongside the current leadership team.
Advent International, in a strategic move, secured a controlling interest in Zimmermann from Italian private equity entity Style Capital. Though specific financial details remain undisclosed, reliable sources close to the situation have informed Reuters that the transaction's valuation of the brand stands at approximately 14 times its fundamental profit. This valuation translates to an impressive sum of approximately US$1.15 billion (equivalent to A$1.76 billion).
With a robust revenue stream of US$260 million and a core profit margin surpassing 30%, Zimmermann has solidified its position as a leader in the fashion industry.
The infusion of capital from Advent is poised to propel Zimmermann's global expansion, particularly across Asia and the Middle East, while concurrently reinforcing its distribution network, including a strategic focus on e-commerce. A joint statement by Advent International, Zimmermann, and Style Capital collectively underscores the investment's potential impact.
Despite this transformative shift, the brand's operations in Sydney are anticipated to remain steadfast. Rajan Sen of Advent International conveyed the firm's dedication to supporting the current management team, led by CEO Chris Olliver, as well as the visionary input of Nicky and Simone Zimmermann.
Zimmermann, renowned for its opulent swimwear and resort attire, initially sprouted from a humble stall at Sydney's Paddington markets in 1991. Today, the label boasts an impressive global footprint of 58 boutiques, prominently distributed across 22 locations in both Australia and the United States. The brand also enjoys a robust presence within renowned department stores.