Italian Luxury Menswear Brand Zegna Merges with US SPAC for Public Listing

Italian luxury brand Ermenegildo Zegna founder Ermenegildo Zegna

[Asia Economy Reporter Cho Hyun-ui] Italian luxury brand Ermenegildo Zegna will be listed on the New York Stock Exchange through a merger with a Special Purpose Acquisition Company (SPAC).

Major foreign media reported on the 19th (local time) that "Zegna has decided to merge with the SPAC 'Investindustrial Acquisition Corp,' created by the European private equity group Investindustrial, to list on the New York Stock Exchange within this year."

The company's valuation is expected to reach $3.2 billion (approximately 3.6845 trillion KRW). Through the merger, Zegna plans to secure $880 million (approximately 1.0132 trillion KRW) to expand its business in the Chinese and U.S. markets.

Founded in 1910 as a fabric manufacturer in the small northern Italian town of Trivero, Zegna expanded its business scope from the 1960s to include luxury menswear, accessories, and sportswear, establishing itself as a luxury menswear brand.

Now in its fourth generation of family ownership, Zegna is a fashion company capable of independently managing all processes from raw material procurement to production. Although sales dropped by about 20% last year due to the COVID-19 pandemic, the company expects to return to its 2019 sales level of $1.3 billion this year.

Gildo Zegna, the fourth-generation family member and Group CEO, said, "We could have continued to operate the company as a family business for the next 100 years, but given the significant challenges in the luxury industry, the merger took place at a timely moment."

This content was produced with the assistance of AI translation services.