The Daily Dish (07/20/21)
Ermenegildo Zegna is planning an SPAC merger with Investindustrial Acquisition Corporation in a deal valuing the combined entity at $3.2 Billion. The move is a strategic shift for the 111-year old family owned brand.
The transaction is expected to raise over $880 million in cash and the new company will list on the New York Stock Exchange. Post the close of the transaction, the Zegna family is expected to have a 62% stake in the new company.
Originally founded as a fabric maker in 1910, the company went on to become a well-known luxury men’s wear brand. In 2018, the company acquired Thom Browne in a bid to attract younger customers and add womenswear.
The label’s revenue has doubled since the acquisition. This year, the company struck a partnership with Prada to invest in a cashmere maker in Italy, as luxury brands seek to better control their supply chain.
The company said that 2020 was a challenging year as it had to slash operating costs by 20%. The company currently operates 296 stores in 80 counties and expects sales this year to recover to the level of 2019.
Investors accounting for over half the money in a funding round with Momentus’s SPAC merger, dropped out when given the opportunity by a settlement with the SEC.
On July 16th, Stable Road Acquisition Corp, the SPAC which is merging with Momentus, said that terms of the settlement with the SEC included a provision which offered investors who participated in a PIPE investment, the ability to drop out without penalty.
The original deal included a $172.5 million cash infusion from Stable Road and $175 million investment from PIPE funding. On July 16th, Stable Road announced that investors accounting for $118 million of the $175 million raised in the PIPE round would terminate their agreements.
The SEC settlement comes after Momentus made false claims about the maturity of its technology and national security issues about its Russian co-founder and Former CEO Mikhail Kokorich. The settlement includes $7 Million in penalties against Momentus and $1 million against Stable Road.
Singapore based Online Real Estate company PropetyGuru, is nearing a merger with Bridgetown 2 Holdings, an SPAC which is backed by Billionaires Richard Li and Peter Theil.
Founded in 2007, PropertyGuru has become a household name in a growing market in Singapore, with operations in other countries including Vietnam, Indonesia, Malaysia and Thailand.
The deal is expected to value the company at around $1.8 Billion including a PIPE investment of around $100-$150 Million.