Sidney, Austra­lia — Zimmer­mann has become the first Austra­lian fashion label to be valued at more than $1 billion follo­wing its majo­rity acqui­si­tion by private equity firm Advent Inter­na­tio­nal. The label’s foun­ders, sisters Simone and Nicky Zimmer­mann, have retai­ned a mino­rity stake in the brand and said the company will conti­nue to be run by them and current management.

Advent Inter­na­tio­nal has acqui­red a majo­rity stake in Zimmer­mann from Italian private equity firm Style Capi­tal. Finan­cial terms were not disc­lo­sed, but two people fami­liar with the matter told Reuters the deal values the brand at 14 times its core earnings, or about $1.15 billion (A$1.76 billion).

Zimmer­mann has sales of $260 million and a core profit margin of more than 30%, the indi­vi­du­als said.

Advent’s invest­ment would allow Zimmer­mann to acce­le­rate expan­sion over­seas, inclu­ding Asia and the Middle East, and streng­then its distri­bu­tion network, inclu­ding e‑commerce, Advent, Zimmer­mann and Style Capi­tal said in a joint statement.

The Sydney busi­ness is not expec­ted to be affec­ted by the acqui­si­tion. Rajan Sen of Advent Inter­na­tio­nal said in a state­ment, “We look forward to support­ing the manage­ment team led by CEO Chris Olli­ver and Nicky and Simone Zimmermann.”

The label, known for its high-end swim and resort wear, began in 1991 with a stall in Sydney’s Padding­ton market. There are now 58 Zimmer­mann bouti­ques world­wide, inclu­ding 22 in Austra­lia and 22 in the U.S., and is repre­sen­ted in major depart­ment stores.