Italy-based fashion group, Ermenegildo Zegna, popular for its classic men’s suits, has announced to buy a majority stake in Thom Browne, a revolutionary American brand, marking the family firm’s ambitions to reach new markets and tap a younger set of consumers.
Reportedly, the Italian brand has acquired 85 per cent stake in Thom Browne at a valuation that touched the US $ 500 million mark. After this acquisition, Thom Browne is the lone shareholder in the company with 15 per cent stake.
In a statement issued, Zegna said that the brand is excited to have the experience and expertise of Thom on board which has built a loyal client base with his visionary approach and unmatched point of view to tackle issues.
“On this strong basis, and thanks to a booming women business and strong appeal with young generation, we are expecting that we can build long-term value for all of our stakeholders,” the Italian fashion brand said.
Notably, the American clothing brand is currently the official off-field apparel provider of the current Spanish football champion, FC Barcelona.
Reportedly, as per the acquisition, Browne’s business will remain an independent entity, with the famous designer continuing as the Chief Creative Officer (CCO) and Rodrigo Bazan as its CEO. “The deal was agreed upon “in a privately negotiated manner with [Ermenegildo Zegna], Thom and I,” said Ken Suslow, Managing Partner, Sandbridge Capital, previous majority stakeholder of Thom Browne.
Browne elucidated on the development that Zegna’s passion for only the best quality and skills are very much aligned with how he personally approached his collections.
This step can aid Zegna to tap a larger part of the US, a region where the Italian brand is still trying to boost its presence.
