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Italy’s Ermenegildo Zegna acquires Thom Browne

By Prachi Singh

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Business

Italian men’s luxury group Ermenegildo Zegna has acquired 85 percent stake in the American luxury label Thom Browne from Sandbridge Capital for around 500 million dollars, reports Financial Times quoting a statement from the company.

The report further quoted Gildo Zegna, Chief Executive of Ermenegildo Zegna, saying in the statement that Thom Browne fitted with the Italian group’s ethos of “excellence, and impeccable, modern tailoring”. “On this strong footing and thanks to a thriving women’s business and strong appeal with millennials, we believe that we can build long-term value for all of our stakeholders,” he added.

Zegna buys US-based luxury menswear label Thom Browne

The purchase of Thom Browne is a fresh addition to Milan-based family-owned Group’s traditional menswear, since the former is known for their men’s suit collection for the younger generation.

American designer of the namesake label, Thom Browne, added to the statement that this deal gave Thom Browne a partner that “brings the knowledge and skills of a global leader.”

The report added that Zegna’s revenues increased 4.5 percent at constant exchange rates to 1.2 billion euros (1.4 billion dollars) in 2017, while the Group’s net profit reached 32.8 million euros (38.4 million dollars), a rise of 64 percent year on year.

According to the statement accessed by Financial Times, Browne will continue to remain the only other shareholder besides the Zegna family in Thom Browne, and will hold his position as the company’s Chief Creative Officer and Rodrigo Bazan will continue to remain in his role as Chief Financial Officer.

photo: catwalkpictures.com, Thom Browne SS '19

Ermenegildo Zegna
Thom Browne