Moncler acquires technical outerwear specialist Stone Island
Italian luxury group Moncler is acquiring Italian technical outerwear specialist and terrace favourite Stone Island in a two-step acquisition.
The deal gives Stone Island a valuation of €1.15bn, according to report by Reuters. Initially, Moncler, once a French traditional skiwear brand and now an Italian-owned major fashion house, will buy just over 50% of Stone Island from its owner and CEO, Carlo Rivetti, and “a further 19.9% from other members of his family.”
Rivetti and his family will then apparently subscribe for an amount equal to 50% of the consideration, or 10.7 million new Moncler shares, at a set price of €37.51 per share, according to a joint statement.
Moncler Chairman and CEO, Remo Ruffini, said the company would remain “cash neutral or cash positive” even after the deal.
“We are coming together at a challenging moment both for Italy and the world, when everything seems uncertain and unpredictable,” Ruffini said in a statement.
Rivetti will join Moncler’s Board of Directors, and Ruffini said the two brands would remain independent.
Moncler aims to acquire the entire share capital of Stone Island, buying the remaining 30% held by Singapore’s state investor, Temasek. The deal is expected to be completed in the first half of 2021.