Ermenegildo Zegna prepares its IPO with a valuation of 3,200 million euros

Often shortened to and known as Zegna, this Italian luxury fashion house was founded by Ermenegildo Zegna in 1910, in Trivero (Piedmont). From the beginning and until now, it continues to be one of the few firms that remain in the hands of the founding family, without belonging to any multinational conglomerate.

From the moment of its foundation, Zegna was configured as a textile brand dedicated to men's luxury, both in clothing and accessories. And perhaps its strict specialization and the creation of its own niche have been reasons enough to achieve the success it enjoys. Today, it is one of the best-known companies in Italy and the largest menswear brand in the world by turnover, which is now preparing to go public in the United States.

The Italian firm that began its journey in the textile industry with the dream of creating the most beautiful fabrics in the world, has become one of the most well-known dynamic family businesses in the Mediterranean country. The second generation, led by Angelo and Aldo Zegna, was responsible for creating luxury garments that later became ready-to-wear (as well as opening the brand's first boutique in Paris in 1980).

The company is currently run by the third generation of the family. Gildo Zegna becomes CEO; Paolo Zegna, president; and Anna Zegna, president of the homonymous Foundation. An incipient fourth generation is already working with the most veterans to continue the legacy started 111 years ago, and it does so from the point of view of innovation.

With an international focus from the beginning, both its founder and the nascent brand were ahead of their time. Although time has passed and trends in textiles and technology have contributed to making Zegna a brand adapted to consumer needs, there are things that never change. Their leadership remains family and, together with Armani, they maintain the podium of managed firms in the hands of the generations of the founding family.

Ermenegildo Zegna's brilliant business mind was not limited to his specific industrial field. Aware that the quality he was looking for in his products went hand in hand with a positive relationship with the territory and the community at the local level. A vision that today translates into a historical fact: his entry on the stock market in New York. The operation will be carried out by Investindustrial Acquisition Corp, a Spac backed by funds linked to Investindustrial, and with a valuation of 3,200 million euros.

For the Zegna family, this leap represents an emphasis on the success of the Italian company's strategy. The brand will maintain a majority stake in the company, which is around 62% and its total estimated valuation of 3.2 billion dollars translates into a capitalization of 2.5 billion dollars.

It is a step forward for a company that has undergone many changes – all of them positive – in recent years. Currently, the brand has 296 establishments in 80 markets, as a result of the international expansion that Gildo and Paolo Zegna began when they took charge of their respective positions. More than 500 stores in more than 100 countries. Those are Zegna's credentials, added to the increase in purchases and alliances.

Since 2018, the company has led various synergies in order to continue positioning Zegna in the market and reach new audiences, such as the youngest. This he achieved by taking control of Tham Browne.

The listing on the stock market is scheduled for September (2021) and a greater knowledge of the firm in the American context is expected from it. His presence there should represent 15% of sales of clothing and accessories this year. If these forecasts are fulfilled, the Italian will use the income obtained to boost digital sales and start considering acquisitions.

Every Zegna business move in its rise in industry recognition is complemented by careful and strict upholding of its century-old values. The founder, who understood the beauty of the natural environment and the well-being of people, made the company aspire to long-term success. His desire was to make his city, and the whole world, a better place. The Zegna family has kept alive the idea that product quality can only flourish when a "culture of beauty" is nurtured, a philosophy that must respect the environment and the people who live in it.