Organic growth the priority for luxury group Zegna, says CEO

  • 12/20/2021
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ROME, Dec 20 (Reuters) - Organic growth is the priority for Italian luxury group Ermenegildo Zegna , its Chief Executive said on Monday as the company makes its debut on the New York Stock Exchange. Founded as a textile company in 1910 and now a leader in luxury menswear, Zegna has turned to investors to fund expansion. "The priority is organic growth ... more than acquisitions, we will talk about integrations which follow our values and our DNA," Gildo Zegna told daily newspaper La Stampa. In a separate interview with la Repubblica newspaper, he said the group would consider acquisitions should the opportunity arise but added that the company has "so much scope to grow organically" that it is in no rush to buy. The Zegna family retained nearly 66% of the combined business after its merger with a U.S. blank-cheque company. The merged company is expected to have an initial enterprise value of $3.1 billion and an initial market capitalisation of $2.4 billion. CEO Zegna told La Stampa that the listing would help the company to "acquire scale in a more competitive market, where size is important", adding that it would also boost brand value. In a separate interview with Corriere della Sera, Zegna said he did not rule out a listing in Italy but there are no plans to do so. The group has managed to survive the COVID-19 pandemic by cutting 100 million euros ($112.52 million) in fixed costs, he told La Stampa. ($1 = 0.8887 euros)

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