ZEGNA GROUP TO ACQUIRE MAJORITY STAKE OF THOM BROWNE
The Ermenegildo Zegna Group has announced that it has reached an agreement with Sandbridge Capital and with Mr. Thom Browne for the acquisition of 85 percent of Thom Browne Inc, for an enterprise valuation of approximately half a billion dollars. Mr. Browne will be the sole other shareholder, with the balance of the company’s shares.
The Thom Browne business will remain independently run, in order to pursue and accelerate the strong and profitable growth trajectory that the brand has seen over the past several years. As such, Mr. Browne will continue in the same capacity as chief creative officer and Rodrigo Bazan will retain his role as chief executive officer.
“As global leaders in luxury menswear, we have always been open to opportunities for external growth,” said Ermenegildo Zegna, chief executive officer of the Zegna Group. “And, since we started looking at partnerships, I always knew that Thom Browne would be the perfect fit. In addition to the immediate benefits with regards to fabrics and manufacturing support we can leverage our global reach to further expand Thom Browne’s retail network. Most importantly, we share the same passion for excellence and impeccable, modern tailoring. Thom’s visionary approach and his unique point of view have enabled him to build and nurture the most loyal clientele. 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.”
Zegna added: “I am very proud to oversee a rare major investment by an Italian luxury player in an American company. I have always been a strong admirer of the United States, and look forward to our strengthened presence here.”
“I am very proud and excited for my new partnership with Zegna,” commented Browne, founder and chief creative officer. “I feel that their passion for only the best quality and craftsmanship is very much aligned with how I have always approached my collections … my conceptual approach to design and the long-term vision of growing a true luxury design-led collection for men and women is something we both feel strongly about as the future strength of Thom Browne … with Zegna, Thom Browne will have a partner who not only understands the fundamentals of this business, but truly embodies them and brings the knowledge and skills of a global leader.”
“As I welcome Gildo to the Thom Browne world, I want to personally thank Sandbridge Capital, and Ken Suslow in particular, for being such a good partner, but more importantly, being such a good friend,” continued Browne. “I have always valued our friendship over the years of our partnership because he has always proven to be a true gentleman. We would have not achieved the outstanding growth of Thom Browne without his support.”
Ken Suslow, founding managing partner of Sandbridge Capital, added: “I could not be more pleased to announce this transaction, which ensures the continued long-term growth of Thom Browne. I am profoundly grateful for the successful partnership that Thom and I have developed over the years. Thom is a uniquely talented visionary – his enduring commitment
to building a modern American luxury house dedicated to the finest craftsmanship and tailoring is truly inspiring.”
