Investindustrial Acquisition Corp.’s $3.2 Billion Combination with Ermenegildo Zegna Group

Sullivan & Cromwell and De Brauw Blackstone Westbroek advised Ermenegildo Zegna Group, while Chiomenti and Kirkland & Ellis advised Investindustrial Acquisition Corp. on the transaction. Shearman & Sterling represented placement agents in PIPE in connection with the business combination.

Investindustrial Acquisition Corp., a special purpose acquisition corporation sponsored by investment subsidiaries of Investindustrial VII L.P., signed its business combination agreement with Ermenegildo Zegna Group, a world-renowned Italian luxury house, that will result in Zegna becoming a public company listed on the New York Stock Exchange later this year.

The merged entity will have an initial enterprise value of $3.2 billion. The transaction includes a fully committed $250 million PIPE and is expected to close by the fourth quarter of 2021, subject to customary approvals. 

Founded as a fabric maker in 1910 by Ermenegildo Zegna in Trivero, Italy, the Group continues to be led by the third and fourth generations of the Zegna family, driven by the founder’s pioneering commitment to sustainability, responsibility towards the environment, the communities and the territory which finds its living path in Oasi Zegna, a 100 square kilometer natural park surrounding Lanificio Zegna.

Investindustrial is a leading European group of independently managed investment, holding and advisory companies with €11 billion of raised fund capital. With ESG principles deeply embedded into the Firm’s core approach, Investindustrial has a 30-year history of providing mid-market companies capital, industrial expertise, operational focus, and global platforms to accelerate sustainable value creation and international expansion. 

UBS Investment Bank acted as exclusive financial advisor to Ermenegildo Zegna Group with a team led by UBS Italy Country Head Riccardo Mulone, and as co-lead placement agent on the PIPE. Deutsche Bank, Goldman Sachs Bank Europe, SE – Succursale Italiana, JP Morgan Securities Plc and Mediobanca acted as financial advisors to Investindustrial Acquisition Corp. Deutsche Bank, Goldman Sachs & Co.LLC and JP Morgan Securities Plc acted as co-lead placement agents on the PIPE. Mediobanca provided a fairness opinion to Investindustrial Acquisition Corp.’s Board of Directors.

The Kirkland team was led by corporate partners David Perechocky (Picture) and Jonathan Davis, capital markets partners Cedric Van den Borren and Christian Nagler, and debt finance partner Neel Sachdev and a global team including debt finance associate Marco Bagnato, capital markets partner Wayne Williams and associates Anthony Zangrillo and Serguei Chevtchenko, corporate associate Marc Holloway, derivatives partner Jamie Madell, and IP litigation partner Claudia Ray. 

The Shearman & Sterling team was led by partner Christopher Forrester and counsel Yian Huang, and included Geeth Makepeace.

The De Brauw Blackstone Westbroek team included Maarten van der Weijden, Paul Cronheim, Reinier Kleipool, Joppe de Bruijn, Nathalie van Wiggen, Tijmen Klein Bronsvoort, Lars Buiten, Lenina Broers, Sophia van Straalen.

 

Involved fees earner: Lenina Broers – De Brauw Blackstone Westbroek; Lars Buiten – De Brauw Blackstone Westbroek; Paul Cronheim – De Brauw Blackstone Westbroek; Joppe de Bruijn – De Brauw Blackstone Westbroek; Tijmen Klein Bronsvoort – De Brauw Blackstone Westbroek; Reinier Kleipool – De Brauw Blackstone Westbroek; Maarten van der Weijden – De Brauw Blackstone Westbroek; Sophia van Straalen – De Brauw Blackstone Westbroek; Nathalie van Wiggen – De Brauw Blackstone Westbroek; Marco Bagnato – Kirkland & Ellis; Serguei Chevtchenko – Kirkland & Ellis; Jonathan Davis – Kirkland & Ellis; Marc Holloway – Kirkland & Ellis; Christian Nagler – Kirkland & Ellis; David Perechocky – Kirkland & Ellis; Claudia Ray – Kirkland & Ellis; Neel Sachdev – Kirkland & Ellis; Cédric Van den Borren – Kirkland & Ellis; Wayne Williams – Kirkland & Ellis; Anthony Zangrillo – Kirkland & Ellis; Christopher Forrester – Shearman & Sterling; Yian Huang – Shearman & Sterling;

Law Firms: De Brauw Blackstone Westbroek; Kirkland & Ellis; Shearman & Sterling;

Clients: Deutsche Bank; Ermenegildo Zegna; Goldman Sachs & Co.; Investindustrial Acquisition Corp.; JP Morgan Securities;

Author: Martina Bellini