The Ermenegildo Zegna Group has announced it has agreed a deal with Thom Browne to buy 85% of the company. The deal will leave founder Thom Browne as the only other shareholder
It is a multi-million dollar investment for Zegna, after Thom Browne was valued at $500m (£384m). Browne, the company’s founder, will stay on at the label as its chief creative officer.
Rodrigo Bazan, who was appointed in 2016 from Alexander Wang, will also continue as chief executive.
Ermenegildo Zegna, chief executive officer of the Zegna Group, confirmed that Thom Browne would remain independently run with the intention of continuing the growth it is has achieved in recent years. Worldwide, Thom Browne menswear is now available in 300 retail locations, and womenswear in 200, across North America, Europe and Asia.
The deal marks the first time Zegna Group has invested heavily in a US business.
“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,” said Zegna. ”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.”
Browne also said he was also “very proud and excited” about the partnership, adding that both parties feel strongly about growing the brand as a luxury design-led collection for men and women.
The deal also marks the exit of private equity partner Sandbridge Capital, which acquired a 67% stake in Thom Browne in 2016.
Ken Suslow, founding managing partner of Sandbridge Capital said: ”I believe that Zegna is the ideal partner for the Thom Browne brand. It is for this reason that we did not engage with other interested parties, and that instead Gildo [Ermenegildo Zegna], Thom and I agreed upon this deal in a privately negotiated manner.”