Italian luxury fashion group Ermenegildo Zegna has entered into an agreement to become a public company by combining with a US special-purpose acquisition company launched by European private equity group Investindustrial and chaired by former UBS chief executive Sergio Ermotti.

This deal gives Zegna business an enterprise value of 3.2 billion dollars and puts an end to over 100 years of private ownership for the family business. They expect to raise about 880 million dollars and use the funds to reinforce Zegna’s menswear business, both organically and inorganically.