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Italian luxury group Ermenegildo Zegna to list in US through SPAC deal

The family-owned fashion powerhouse is being valued at US$3.2bn (£2.3bn)

Italian luxury group Ermenegildo Zegna to list in US through SPAC deal

Italian luxury group Ermenegildo Zegna is to list in the US through a deal with a special-purpose acquisition company (SPAC).

It will value the family-owned fashion powerhouse, founded in 1910, at US$3.2bn (£2.3bn).

READ: SPACs and blank-check companies - a two-minute explainer

The SPAC was established by European private equity group Investindustrial and is headed by Sergio Ermotti, former chief executive at UBS, Reuters reported.

Zegna will retain 62% of the combined holding after selling a portion of its stake, raising US$880mln.

"We could have remained independent for another 100 years, but the moment is appropriate and the world has changed a lot and luxury has become very challenging," chief executive Gildo Zegna told the Financial Times.

The halt to international tourism has hit small high-end brands more than larger groups. On Sunday, Italian fashion label Etro agreed to sell a majority stake to LVMH-backed fund L Catterton.

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