Zegna

Foundation and early years

The origins of the family business date back to the late 19th and early 20th centuries, when Michelangelo "Angelo" Zegna (1859–1923), a watchmaker from Trivero, Biella, decided to open a textile factory in the nearby town of Flecchia.[4] In 1910, three of Angelo's ten children, including the youngest Ermenegildo (born in 1892), along with a fourth partner, Costanzo Giardino Vitri, founded the wool mill Zegna & Giardino[5] in Trivero in the Biellese Alps.[6][7] With the early departure of Vitri and one of the brothers, Ermenegildo took the helm from the beginning, joined by his brother Mario until the early 1940s.[8]

Growth

Zegna's vision was to create high-quality fabrics, so he began to source wool directly from several countries around the world, such as Mongolia, Australia, and South Africa;[7] he also bought modern machinery from England.[2]

During the Interwar period, Zegna's business started to flourish. In the late 1920s, the Lanificio (wool mill) employed more than 700 workers,[7] growing to more than 1,000 in the late 1930s.[9] In 1938 the company began to export fabrics in the US, through its subsidiary Zegna Woollens Corporation established in New York City.[7]

In 1942, Ermenegildo's sons Aldo (born in 1920) and Angelo (born in 1924) entered the company, which was renamed Ermenegildo Zegna and Sons.[9]

Second generation

Ermenegildo Zegna's sons, Aldo and Angelo, took over the company in the mid-1960s.[7] Under their guidance, the label both expanded its business to ready-made suits and established new plants and distribution networks abroad. In 1968, the first factory producing sleeve-units and trousers was opened in Novara, followed by openings in Spain, Greece, and Switzerland.[7][9] Sales and marketing departments were also established in France, Germany, the U.K., and the U.S.[7]

In 1972, Zegna launched its made-to-measure service called Su Misura.[7]

Zegna's attention to wool quality continued through 1960s and 1970s, as the company established the Wool Awards in Australia (1963) and the Mohair Trophy in South Africa (1970).[12]

Third generation

1990s to present

During the 1990s, the third generation of the Zegna family entered the business. Angelo's son, and namesake of the company's founder, Ermenegildo "Gildo" Zegna, became CEO of the Group in 1997;[15] his cousin Paolo became the chairman.[6] Under their governance, the company began a strategy of brand extension and full verticalization.[9][10]

From 1990 to 2020, Zegna held the majority in women's fashion brand Agnona brand; it was subsequently sold to the Aimone family, another branch of the Zegna family, with the Zegna group keeping 30 percent.[16]

In 1991 Zegna was the first luxury brand to enter the China market, with a flagship store in Beijing;[17]

Acquisitions

Starting from the late 1990s, the Group has undertaken a series of acquisitions of Italian and foreign companies that have expanded its business scope and now form the "Filiera", a unique, company-owned and controlled entity, comprising selected Italian textile producers, integrated with the distinctive manufacturing capabilities of luxury, ensuring excellence, quality, and innovation.

In 2009, the Ermenegildo Zegna Group acquired a majority stake in Tessitura di Novara, a company specialized in high-quality silk weaving.

In 2012, it acquired a minority stake in Pettinatura di Verrone, a company specializing in the combing of fine wools and natural fibers.

In 2014, Zegna acquired the majority of Achill, an Australian wool farm counting about 12,500 sheep in its flock.[19]

In 2016, the Group acquired a majority stake in Bonotto, a high-end textile manufacturer based in Molvena, Vicenza, giving the Group the possibility to explore new areas such as furnishing and experimental fabrics.[20]

Two years later, Zegna – through its subsidiary ZECA company – took over the historic Cappellificio Cervo hat-maker.[21]

Stock exchange listing

In 2021, Zegna agreed to go public by combining with a US special-purpose acquisition company launched by European private equity group Investindustrial.[29]

On 20 December 2021, the Zegna Group went public in New York with a valuation of $3.1 billion and a market capitalization of $2.4 billion .[3] It is the first Italian fashion company to be listed in New York.[30]

The Zegna family retains control of the company with 60.3% of the capital, held directly by Ermenegildo Zegna and the family company, Monterubello SS. Further shareholders include Temasek, holding a 10% stake, and Investindustrial Acquisition Corp., which holds an 11% stake. A total of 19% of the company is publicly traded.[31] Since 2022, the company's legal headquarters have been in the Netherlands, while its operational headquarters remain in Italy.[32]

ZEGNA

ZEGNA was founded in 1910 as a textile company ("Lanificio Zegna").[33] Formerly known as Ermenegildo Zegna, in 2021, in parallel with the Group's stock market listing, the brand name became simply ZEGNA. A new logo was also adopted, referencing the road from which it all began, in homage to the founder’s vision and commitment, who in the 1930s promoted the construction of the provincial road 232 Panoramica Zegna, crossing the company’s original territories.[34]

In 2003 Zegna entered the fragrance market.[35] Over the years, it has also signed partnerships with other major brands such as Maserati,[36]