Moncler, the renowned luxury outerwear brand, has made a significant move in the fashion industry by acquiring the parent company of Stone Island. The deal, valued at €1.15 billion, demonstrates Moncler’s intention to eventually gain full control of Stone Island’s business. The acquisition will commence with Moncler purchasing a stake of over 50% from Stone Island CEO Carlo Rivetti, along with an additional 19.9% from other members of Rivetti’s family in an all-cash transaction. Moncler also plans to acquire the 30% stake owned by the Temasek fund, a minority shareholder in Moncler itself. As part of this agreement, Temasek will have the option to receive payment in newly-issued Moncler shares for up to 50% of the amount owed to them.

Both Moncler and Stone Island share the belief that this merger will enable them to develop a new and exciting luxury vision that caters to the preferences of younger generations of consumers. Remo Ruffini, Moncler’s chairman and CEO, emphasized the importance of new energy and inspiration to shape the future, especially in these uncertain and unpredictable times. The two brands will collaborate and combine their creative and entrepreneurial approaches to brand management, leveraging their technical expertise. While they will maintain their unique brand identities, the aim is to enhance their individual competitive abilities.

Moncler has pledged to support Stone Island in maximizing its growth potential in crucial markets such as the Americas and Asia, as well as through the direct-to-consumer channel. Sustainability is also a shared commitment between the two companies. Moncler, in particular, has excelled in this area and was recognized as a top performer in the Dow Jones Sustainability World and Europe Indexes for Textile, Apparel & Luxury Goods this year.

Stone Island will retain its brand identity, research and experimentation culture, and independent headquarters under Moncler’s ownership. Rivetti expressed confidence that with Moncler’s backing, the brand will experience accelerated growth. Stone Island has already focused on expanding in key markets and recently opened a new store in Beijing. Additionally, a store in Miami is set to open this month, while the UK remains a vital market for the brand. Despite the challenges imposed by the pandemic, Stone Island expects its sales to be on par with last year, and it has observed increased orders for its Spring/Summer 2021 collection compared to the previous year.

Useful links:
Moncler’s official website
Stone Island’s official website