One of the biggest luxury brands in Australia sells its majority stocks through a billion-dollar deal.
One of the most successful and popular designer brands that emerged from Australia is Zimmerman. Known for its printed dresses that are flowy and ultra-feminine, the designer luxury retailer has established a solid reputation and branding. Moreover, the Australian brand has a network of 58 stores in total across Australia, the US, the UK, Europe, and China. Zimmerman also operates through its website.
The mostly family-owned brand is considered a worldwide success. That’s why it was shocking news that a private equity firm bought a majority stake in the company. Advent International made a deal with Zimmerman’s founding family and Style Capital, an Italian private equity firm that specializes in luxury brands, that values the brand at more than one billion US Dollars.
Zimmermann reportedly has revenue of some $260 million and a more than 30 percent core profit margin. The said deal valued the brand 14 times more than its core earnings. Although the financial details were not made public, it was reported that the brand was valued at around $1.15 billion.
All is not lost for the Zimmerman sister, Nicky, and Simone Zimmermann, and Style Capital. They still own the minority stocks in the company.
The decision the purchase of the majority stocks comes from Advent’s expansion of its portfolio. The private equity firm currently owns Lululemon, perfume brands Parfums de Marly and Initio Parfums Privés, beauty retailer Douglas, and make-up brands bareMinerals, BUXOM and Laura Mercier. They often acquire companies that are under luxury retail and consumer goods.
Banner photo via Instagram @zimmerman.