Ermenegildo Zegna, the Italian luxury fashion house, aims to go public by merging with a US special-purpose acquisition corporation launched by European private equity group Investindustrial Acquisition.

The deal will value Zegna at $3.2 billion following its listing on the New York Stock Exchange later this year, Investindustrial said in a statement on Monday.

Milan-based Zegna will own 62 percent of the combined company, which is being given an equity value of $2.5bn, the statement added.

“We could have remained independent for another 100 years. But the moment is appropriate and the world has changed a lot and luxury has become very challenging,” Gildo Zegna, chief executive of Zegna Group, was quoted as saying by the Financial Times.

Zegna’s move to list comes as luxury fashion labels seek to consolidate their businesses, in a bid to strengthen finances, as the retail industry grapples with the coronavirus crisis. Earlier this year, French luxury group LVMH acquired Florence-based fashion house Emilio Pucci and is reportedly in talks to take a 60 percent stake in fashion label Etro through a private equity firm it backs.

The 111-year-old family-owned Zegna will raise $880 million following the deal to further invest in its menswear business and fund its future acquisitions, the company said.

New York-listed Investindustrial will get an 11 per cent stake in the Italian brand.