LVMH has signed an agreement with Moncler's CEO and largest shareholder, Remo Ruffini, to acquire up to 22% of Double R, which in turn owns 15% of the Moncler group.
On Thursday evening, September 26, the giant LVMH announced that it was acquiring a 10% stake in Double R, an investment vehicle holding around 15.8% of Moncler's capital. Ruffini Partecipazioni, the holding company of Remo Ruffini, CEO of the Italian luxury outdoor clothing manufacturer, controls Double R.
The investment vehicle, as specified in the agreement signed between the two parties, will increase its stake in Moncler to 18.5%. This will be achieved through additional purchases of Moncler shares over approximately 18 months, financed by LVMH. LVMH is targeting a 22% stake in Double R, corresponding to 2.2% of Moncler's capital.
Four years ago, rumours suggested a tie-up between the luxury goods group Kering and Moncler, but in the end, it was LVMH that got in on the act.
Over the past 21 years, Remo Ruffini - who will remain at the helm of Moncler as CEO - has succeeded in renewing the image of the luxury down jacket and outdoor clothing brand. The agreement with LVMH is designed to enable Moncler to boost its growth and better define the brand's identity.
Founded in France in 1952 by René Ramillon, the famous high-end down jacket house was bought by Remo Ruffini in 2003. Moncler has 277 single-brand shops worldwide. The group also has 85 shops dedicated to Stone Island, its other flagship brand. Listed on the Milan Stock Exchange, the holding company employs 7,200 people, according to its website.
Last year, Moncler posted sales of close to €3 billion, representing a positive jump of 17% on the previous year's results. Commenting on the partnership with Remo Ruffini, Bernard Arnault said, "Moncler is one of the finest entrepreneurial success stories in the sector over the last twenty years (…) I am delighted that LVMH is investing in its holding company to strengthen its position as Moncler's main shareholder and support the group's independence." As for Remo Ruffini, the press release states that "he will continue to define the strategy and steer the development of the Moncler Group".
For its part, LVMH will appoint two board members to Double R and one to Moncler.
The Italian boss said he was delighted that "Bernard Arnault so clearly supports the long-term ambitions of our group's extraordinary brands".
LVMH's colours are thus becoming ever more visible on the chessboard of the luxury world.
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