Zimmermann valued at $1.5b in Advent deal
Private equity firm Advent International is nearing a deal to acquire Zimmermann in a transaction valuing the Australian fashion brand at about $1 billion ($1.5 billion), people familiar with the matter said.
The American investor could announce the deal as soon as Tuesday, the people said, asking not to be identified discussing confidential information. A representative for Advent declined to comment while Zimmermann couldn’t be immediately reached.
Sisters Nicky and Simone Zimmermann. co-founded the fashion label Zimmermann which spans swimwear, gowns and accessories. Simone works as the brand’s chief operating officer with Nicky focusing on design as creative director.
The Australian Financial Review revealed last month that Advent International had made a bid for Zimmermann, which was not officially up for sale. Banker Alice Wells of Lempriere Wells called it “a solid valuation” for the brand, founded by sisters Nicky and Simone Zimmermann in 1991 at Sydney’s Paddington Markets.
Sisters Nicky and Simone Zimmermann founded their namesake label in 1991 in Sydney. They own a 30 per cent stake in the business, while Style Capital owns the remainder. The Italian firm bought the majority stake in 2020 from General Atlantic for $UIS408 million.
This is the second large deal this year for a big Australian brand. French skincare giant L’Oréal SA agreed in April to acquire luxury cosmetics brand Aesop, which was founded in Melbourne, for an enterprise value of $US2.53 billion.
Zimmermann is speculated to be making about $125 million in earnings before interest, tax, depreciation and amortisation, according to Street Talk.
The local fashion industry is a notoriously tough place to make money. Many companies bootstrap or
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