Ermenegildo Zegna this morning announced the acquisition of Thom Browne from Sandbridge Capital. The Italian fashion group and the investment firm reached an agreement for 85% of Thom Browne Inc, a valuation of $500 million.
Thom Browne is the latest brand to join the Zegna portfolio that includes Ermenegildo Zegna, Z Zegna, and Agnona. The American label will continue to run independently, and Thom Browne and Rodrigo Bazan will remain in their roles as Chief Creative Officer and Chief Executive Officer, respectively.
In addition, Thom Browne will be the only other shareholder of the label.
“As global leaders in luxury menswear, we have always been open to opportunities for external growth. And, since we started looking at partnerships, I always knew that Thom Browne would be the perfect fit,” said Zegna Group CEO Ermenegildo 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.”
Zegna sees the Thom Browne brand as a growth opportunity for menswear, citing a shared “passion for excellence and impeccable, modern tailoring,” and for womenswear and millennial customers.
The CFDA Award-winning designer is universally accepted for his branding that is often worn with pride by his loyal clientele, his designs that are the perfect blend of classic and contemporary, and for his appeal to art connoisseurs that adore exhibit-ready designs and the casual consumer that may be driven by trends and celebrity style.
“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,” said 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.”
Under Sandbridge Capital, Thom Browne expanded internationally; opening stores in London and Milan and throughout Asia in China, South Korea and Japan, and achieved annual sales of $100 million.