Advent International Nears $1 Billion Deal for Fashion Retailer Zimmermann

Zimmerman profits from a strong online business and over 30 stores worldwide.

Advent International is nearing a deal to acquire an Australian fashion retailer, Zimmermann, for $1 billion. Advent is likely to oppose other private equity players in the final stages of the deal, which could be announced as early as this month. Zimmermann was established by Nicky and Simone Zimmermann in Sydney in 1991 and has grown into a global fashion brand synonymous with feminine, bohemian designs. Zimmerman profits from a strong online business and over 30 stores worldwide. Advent is expected to purchase a controlling stake, which includes the holdings of the retailer’s founders and existing investors.

 The founders and management team will remain investors following the acquisition, sources claim. The deal comes as the fashion industry continues to face disruption due to the COVID-19 pandemic, which has accelerated the shift towards online shopping. Last year, Zimmermann terminated concession agreements with Myer and David Jones to sell its collections directly to the Australian consumer through its own channels. In May 2016, the Investor Group acquired a minority stake in Zimmermann, which was overseen by the Blackstone Group's Tactical Opportunities unit. Advent refused to comment on the potential acquisition, whereas Zimmermann couldn’t be reached for a comment.