Zimmermann, the renowned Australian fashion label, has achieved a significant milestone by becoming the country’s first billion-dollar fashion brand. This achievement comes after Advent International, a private equity firm, acquired a majority stake in the label. However, the label’s founders, Simone and Nicky Zimmermann, will still retain a minority shareholding and continue to oversee the company’s operations alongside the current management team.
The financial details of the acquisition have not been disclosed, but sources close to the matter estimate that the brand’s value is approximately US$1.15 billion (A$1.76 billion), which is around 14 times its core profit. Zimmermann boasts an impressive revenue of US$260 million and a core profit margin of over 30%.
With the investment from Advent International, Zimmermann plans to accelerate its international expansion, particularly in Asia and the Middle East. Additionally, the brand aims to strengthen its distribution network and enhance its e-commerce capabilities. This strategic move will undoubtedly propel Zimmermann to greater heights in the global fashion industry.
The acquisition is not expected to have any major impact on Zimmermann’s operations in Sydney. Rajan Sen, representing Advent International, expressed his support for the management team led by CEO Chris Olliver, as well as for Nicky and Simone Zimmermann.
Zimmermann initially started as a small stall at Sydney’s Paddington markets in 1991 and has since grown into a highly acclaimed swim and resortwear brand. It currently operates 58 boutiques worldwide, including 22 in Australia and 22 in the US. The label also enjoys a presence in various top department stores.
Advent International specializes in investments within the retail and consumer goods sectors. Its diversified portfolio includes well-known brands such as lululemon, Parfums de Marly, Initio Parfums Privés, Douglas, bareMinerals, BUXOM, and Laura Mercier. This acquisition further strengthens Advent’s presence in the industry.
Zimmermann’s achievement follows in the footsteps of another notable Australian lifestyle brand. In April, L’Oreal acquired Melbourne-founded skincare company Aesop for $3.7 billion. However, at the time of acquisition, the brand’s founding family no longer had a stake in the company.
Unfortunately, Advent International, the Zimmermann sisters, and Style Capital were not available for further comment regarding the acquisition.
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