By Mauro Orru
The Italian luxury house Ermenegildo Zegna will be opened this year as part of a cooperation agreement with the special-purpose vehicle Investindustrial Acquisition Corp. go public on the New York Stock Exchange.
The family business and SPAC announced Monday that the combined company will have an enterprise value of $ 3.2 billion and a market capitalization of $ 2.5 billion as part of the transaction agreed on Sunday.
The combination of stock and cash funding should generate gross proceeds of around $ 880 million, and the transaction is expected to close in the fourth quarter of 2021.
“Today’s announcement underscores the success of our strategy of continuously focusing on the group’s brand value while building on our heritage, ethos of sustainability and the unique craftsmanship that has made our name synonymous with quality and luxury around the world,” said CEO Gildo Zegna.
The Zegna family will continue to control the company with a share of around 62%.
The luxury goods sector recovers from the damage it suffered from the coronavirus pandemic as economies reopen after months of restrictions and lockdowns.
Zegna expects sales this year to approach 2019 levels. At the end of 2020, the group was present with 296 directly operated stores in 80 countries.
Write to Mauro Orru at [email protected]; @ MauroOrru94