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Advent International → Zimmermann

completed
Deal announced2023-08-07
BuyerAdvent International
SellerZimmermann
SectorFashion
ValueA$1.7B
Deal typeM&A

Global private equity firm Advent International agreed to acquire a majority stake in Australian luxury fashion label Zimmermann from Style Capital, the Melbourne-based private equity firm that had held a majority stake since 2019. Zimmermann's co-founders Nicky and Simone Zimmermann, along with Style Capital, retained a significant minority shareholding after completion.

Why the buyer wanted it

Advent, a specialist consumer/retail investor with a track record in premium fashion, saw Zimmermann as a high-growth global luxury brand with strong direct-to-consumer momentum in the US and Europe, and wanted to fund international store expansion and wholesale/e-commerce growth off a strong earnings base (reportedly around 14x core profit).

Why the seller agreed

Style Capital, having backed Zimmermann since 2019 and overseen a period of strong growth (including a jump in earnings), used the sale to realise a return for its fund investors, while the Zimmermann family used the transaction to bring in a larger, globally networked partner for the brand's next growth phase, retaining a stake to stay involved.

Stock reaction

Not applicable — Zimmermann and Style Capital are both privately held.

Analyst / market commentary

Press coverage (Bloomberg, WWD, Business of Fashion) framed the deal as one of the largest-ever investments in an Australian fashion brand and a vote of confidence in Zimmermann's US expansion strategy, with commentators noting the brand had significantly grown earnings under Style Capital's ownership.

Deal mechanics

Deal structure

Advent acquired a majority (control) stake in an all-cash transaction; the Zimmermann family and Style Capital retained a minority shareholding. Exact ownership split and full contractual terms were not publicly disclosed.

Valuation multiple

Reported by sources close to the deal at approximately 14x Zimmermann's core profit (EBITDA), implying an enterprise value north of US$1 billion.

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