Ermenegildo Zegna is set to go public by combining with a New York-listed special purpose acquisition company (SPAC) in a deal that values the Italian luxury company at $3.2 billion.
The Italian luxury group returned to profitability in the first half of 2021, after the pandemic sent sales plunging and pushed it into the red.
It reported a €31 million ($36 million) profit for the six months ending June 30, compared with a €86.7 million loss during the same period last year. Sales were up 50 percent year-on-year, at €603.3 million.
The company said it had seen “solid growth” in the third quarter, adding its performance at the end of September was close to pre-pandemic levels.
The family-owned menswear group, which owns Thom Browne in addition to its flagship Zegna brand, has plans to go public later this year by merging with a New York-listed special purpose acquisition company (SPAC), giving the firm an anticipated enterprise value of $3.2 billion.
Why Ermenegildo Zegna Is Going Public
The Italian menswear brand is raising $880 million by merging with a New York-listed SPAC. The funds will give the luxury firm greater financial firepower to help it bounce back from a bruising pandemic year and fend off competitors.