Italy Luxury House Ermenegildo Zegna Aims To Go Public Via $3.2B SPAC Deal

Italian luxury house Ermenegildo Zegna Group agreed to go public via a $3.2 billion special purpose acquisition corporation (SPAC) merger with Investindustrial Acquisition Corp IIAC.
The Zegna family will continue to control the company with a 62% stake.
The merger is likely to deliver $880 million of gross proceeds. The proceeds include IIAC's $403 million cash held in trust, a fully committed $250 million Private Investment in Public Equity (PIPE), and $225 million in a forward purchase agreement Investindustrial VII L.P. (SSH) subsidiary Strategic Holding Group S.à.r.l.
Under the forward purchase agreement, SSH will invest $225 million, which, together with relevant Sponsors promote shares, will provide them with circa 11% of the company.
Ermenegildo Zegna has evolved from a producer of textiles and menswear into a leading purveyor of luxury goods. In 2018 Zegna acquired the majority stake in American luxury fashion brand Thom Browne.
Price action: IIAC shares are trading lower by 0.49% at $10.12 premarket on the last check Monday.