Ermenegildo Zegna, the 112-year old family-owned Italian luxury fashion house headquartered on Milan having had legacy subsidiaries like of Thom Browne Inc alongside Tessitura Ubertino srl among others, said in a statement later last week that the Milan-based luxury fashion group had concluded a merger with a US-based SPAC (Special Purpose Acquisition Company) which in effect would enable the Italian fashion house to start off trading in NYSE as early as from Monday under a ticker symbol “ZGN”. On top of that, Zegna said in a statement following the announcement that the merged entity would likely to be valued at a lump-sum of $3.1 billion, while the entity would have an initial market cap of $2.4 billion. In point of fact, Zegna’s merger with a US-based blank check firm has been a latest illustration of Italian family-owned businesses’ urge to lure in outside investments in bids to boost up market expenses which would allow them to compete with heavy-weight fashion brands, as a number of European luxury fashion brands had been met with a withering downturn in revenues over past couple of years due to an ongoing public health crisis.
Italy’s Zegna to start trading on NYSE from Monday
Apart from that, according to the financial terms of the SPAC merger deal, Zegna had reached a merger deal with a US-based SPAC, Investindustrial Acquisition Corp, while the deal would proffer the Milan-based fashion house a stark upsum of $761 million in fresh capitals alongside a 66 per cent ownership in the merged entity.
Founded back in the 1910s as a textile company, Zegna turned to a leader in luxury menswear over recent years.