The men’s wear label will be known as Zegna and, celebrating the company’s family heritage and to mark its new era, the logo will be updated in a modern font.
The road becomes a key element and a symbol of the new logo, as it is inspired by Road 232 that founder Ermenegildo Zegna built over 110 years ago in the mountains of Northern Italy, Piedmont, around Trivero where the company is based, planting half-a-million pine trees and creating the Oasi Zegna. Located a 90-minute drive from Milan, the Oasi offers views of the Alps, from the Monviso pyramid-shaped mountain to the Monte Rosa massif.
The company, which is now led by Gildo Zegna, third generation of the family, as chief executive officer, is still inspired by its founder and his values, as he built a community around his wool mill and developed a new kind of ethical entrepreneurship.
The double-stripe signifier and the new Zegna logo are set to be unveiled with a collection to be launched on Dec. 3, paying tribute to the outdoors and winter sports, as well as the company’s roots in the Piedmont mountains.
The road symbol, in a vicuna color that celebrates one of the most precious fabrics used by Zegna, will be woven through every collection as a graphic representation. The group’s retail network will feature the new Zegna logo. The change is expected to be completed within 2022.
As reported, in July Zegna said it was planning an initial public offering in a deal that is expected to give the fashion group a market capitalization of $2.5 billion. The Italian men’s wear giant entered into a business agreement with Investindustrial Acquisition Corp., a special purpose acquisition corporation, sponsored by investment subsidiaries of Investindustrial VII LP.
The deal will allow Zegna to further expand globally and continue to build its manufacturing pipeline through acquisitions. Gildo Zegna is to retain his role as CEO and add that of chairman of the company. When the IPO plans were revealed, he reiterated his goal is “to control the supply chain, become stronger and integrate brands within our own culture and DNA and remain competitive.”
The Zegna family will continue to control the company with a stake of about 62 percent. Investindustrial will have an 11 percent stake and 27 percent will be free floating. Based on the transaction value, the merged entity will have an anticipated initial enterprise value of $3.2 billion.
The transaction is expected to deliver about $880 million of gross proceeds, consisting of IIAC’s $403 million cash held in trust, a fully committed $250 million private investment in public equity, upsized by $50 million in light of strong investor demand, and about $225 million in a purchase agreement with Strategic Holding Group Sàrl, an independently managed investment subsidiary of Investindustrial VII LP and subject to a lockup period of up to three years.
As reported, the group was back in the black in the first half and after the impact of the COVID-19 pandemic last year.
In the six months ended June 30, Zegna reported a profit of 32.2 million euros, which compares with a loss of 87.8 million euros in the same period last year.
Boosted by a strong performance in Greater China, revenues rose 49.9 percent to 603.3 million euros, compared to 402.4 million euros the first half of 2020, with a slightly negative currency impact and an acceleration of revenues in the second quarter compared with the first quarter.
In the first half, sales at the Ermenegildo Zegna brand were up 36.1 percent to 465.9 million euros, compared with 342.3 million euros in the first half of 2020, despite traffic still being below pre-COVID-19 levels. The performance was lifted by the direct-to-consumer channel mainly in the United Arab Emirates, the U.S. and Greater China, as well as by the wholesale channel.
Zegna acquired a majority stake in Thom Browne in August 2018 and sales at that label more than doubled to 142.6 million euros, compared with 63.2 million euros in the first half of 2020.