A popular Australian fashion brand founded by two Sydney sisters has become the highest-ever valued fashion label in the country.
Advent International, a private equity firm, recently bought a majority stake in Zimmermann, a fashion brand created by Nicky and Simone Zimmermann in 1991.
The transaction, valued between AU$1.5-1.75 billion according to yesterday’s reports from The Australian Financial Review, makes it the highest valuation of an Australian fashion brand ever.
Advent International bought the majority stake from Style Capital who, in 2020, bought a 70 per cent stake in Zimmermann. Style Capital will continue to hold a minority stake in the brand, as will the Zimmermann family.
Nicky Zimmermann, the co-founder and chief creative officer of Zimmermann, said in a statement on the sale that she’s excited to partner and work with both firms to build the brand on an international scale.
“There are so many exciting opportunities for Zimmermann ahead and Simone and I feel extremely fortunate to be going on this journey with our team, one that started nearly 30 years ago at Paddington Markets in Sydney,” she said.
“For us, the opportunity to work alongside so many talented and passionate people each day is a privilege and there is so much we want to achieve together.
“We look forward to working collaboratively with our new partners to achieve our shared ambitions for the brand, with our loyal clients at the centre of that vision.”
While Zimmermann currently has stores in Beverly Hills, New York and London, the partnership with Advent International aims to build the label in markets like Asia and the Middle East.
Ranjan Sen, the managing partner at Advent International, said Zimmerman has potential for further expansion as a fast-growing luxury label.
“The Zimmermann team have successfully created a distinctive and desirable global luxury brand, which has built a loyal customer base around the world,” he said.
“We look forward to supporting the management team around the CEO, Chris Olliver, and Nicky and Simone Zimmermann, to help build on the company’s strong foundations and deliver superior continuous growth.”
After graduating from a design school in Sydney in 1990, Nicky Zimmermann designed and created clothes in the garage at her parents’ house to sell in markets over the weekends.
Momentum for her designs began to build after featuring in two pages of Australian Vogue. Suddenly, Nicky started receiving orders from boutiques all around the country.
She opened a store in Darlinghurst in Sydney and, together with her sister Simone, they established the Zimmermann brand.
“I could never have achieved what we have without Simone,” Nicky said in an interview with Business of Fashion.
“While the business has evolved and fashion has changed, Simone has been a voice of reason and a constant.”
Today, Zimmermann has grown significantly, boasting 3.5 million followers on Instagram.
For the first time in 2022, the brand showcased their Spring 2023 collection at Petit Palais during Paris Fashion Week.