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Zimmermann, the Australian luxury brand known for its floral dresses and swimsuits, is starting a new chapter. Private equity firm Advent has agreed to acquire a majority stake in the brand as it prepares for expansion into new markets including Asia and the Middle East.
Advent — which has invested in more than 400 companies, including Lululemon, Olaplex and Laura Mercier owner Orveon — will acquire the stake from Milan-based investment company Style Capital, which originally invested in Zimmerman in 2020. Style Capital and Zimmermann founders Nicky and Simone Zimmermann will retain a minority stake.
Terms were not disclosed, although Reuters reports that the deal values Zimmermann at more than $1 billion. (Zimmermann declined to comment.)
The investment will help accelerate Zimmermann’s international expansion in new and existing markets, as well as aid growth across its product categories (its Autumn/Winter 2023 collection marked an extension into denim) and accessories, and strengthen its online presence, the companies said.
“Early in our conversations with the Advent team, it became clear that they recognised the considerable potential within the brand and shared a common vision for further expansion over the long-term,” Style Capital CEO Roberta Benaglia said in a statement.
“Zimmermann presents a rare and exciting opportunity to acquire a fast-growing iconic luxury fashion brand with significant potential for further expansion,” added Ranjan Sen, managing partner at Advent International. “The Zimmermann team have successfully created a distinctive and desirable global luxury brand, which has built a loyal customer base around the world.”
The Zimmermann sisters founded the brand in Sydney in 1991 and it now has 58 bricks-and-mortar stores across Australia, US, the UK, Europe and China. International retail partners include Selfridges, Harrods, Net-a-Porter and Matchesfashion. Zimmermann’s revenue is approximately $260 million, people close to the matter told Reuters. It has been showing on schedule at Paris Fashion Week since October 2022. Zimmermann declined to comment.
“We look forward to supporting the management team around [Zimmermann] CEO Chris Olliver, and Nicky and Simone Zimmermann, to help build on the company’s strong foundations and deliver superior continuous growth,” Sen said.
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