Ermenegildo Zegna Group Sees Signs of Pandemic Recovery in H1

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.

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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.