07 December 2020 12:57
United by their "beyond fashion, beyond luxury" philosophy, Stone Island has unexpectedly joined Moncler. The deal is reported to be a €1.15 billion EUR (approximately $1.39 billion USD) cash sale for 100 percent of Stone Island's shares paid in cash to be incorporated into Moncler in development of a new shared vision of luxury. Together embracing experientiality, inclusivity, while fostering a sense of belonging to a community that mixes the diverse meanings and worlds of art, culture, music and sport. With the partnership, the Italian names will look to strengthen their ability to interpret evolving cultural codes for new generations while continuing to reinforce their position in an emerging segment of luxury. Remo Ruffini, Chairman and CEO of Moncler S.p.A. and Carlo Rivetti, Chairman and CEO of Stone Island are looking to strengthen the competitiveness of Moncler and Stone Island while respecting the identity and autonomy of accelerating the development of both companies.
Aside from sharing its knowledge and experience of capturing the important growth potential in particular of the Americas and Asian markets as well as the Direct to Consumer channel, Moncler will be introducing Stone Island to its culture of sustainability that has made it an Industry Leader of the Textile, Apparel & Luxury Goods sector in the Dow Jones Sustainability Indices World and Europe for the second consecutive year. Both brands will be consolidating their technical product know-how, entrepreneurial, managerial and creative cultures in a shared outlook of Ruffini and Rivetti's vision of the future. Catch comments from Remo Ruffini and Carlo Rivetti regarding Stone Island joining Moncler below. Remo Ruffini I have always worked to build a strong brand where uniqueness and closeness to the consumer have been the cornerstones of a development always beyond trends and conventions. Sharing the same vision leads us today to joining forces with Stone Island to write our future together.
This is a union of two Italian brands with the same values, the same management rigor, the same passion for innovation, the same love for their people and the same desire for the future. It's the celebration of the resilience of a country that no crisis can stop. Carlo Rivetti Remo and I have decided to combine forces and visions to meet together and with greater strength than ever the challenges we all face. We share the same roots, similar entrepreneurial journeys and the utmost respect for the profound values of our brands and our people. And we are Italians.
And so, begins a new chapter for Stone Island, the start of a journey that will help our brand to reach its full potential, while maintaining its strong brand identity and continuing to nurture its culture of research and experimentation. Our headquarter in Ravarino will remain the beating heart of the brand and a center of excellence that will be further enhanced and my team and I will continue, in our current roles, to do what we have been doing with great passion for many years. This is a partnership that represents a great opportunity for the continued development of both companies and which will help Stone Island accelerate its international growth thanks to Moncler's experience in both the physical and digital retail world. This is also an opportunity to share and grow for all the people of Moncler and Stone Island with whose contribution we will continue to write, together, a story of ingenuity, creativity and professionalism to honor Italy in the wider world. For more contemporary fashion news, contemporary anarchy defines Shane Gonzales' BOY London FW20 collection. Moncler, the Italian maker of luxury puffer jackets, has agreed to buy Stone Island in a cash-and-share deal that values its smaller rival at €1.15bn. In the first step of a two-part acquisition, Moncler will buy 70 per cent of the company that owns Stone Island from chief executive Carlo Rivetti and his family. It will then buy the remaining 30 per cent from Temasek, the Singaporean state-backed investor. The Rivetti family will subscribe for newly issued Moncler shares equal to 50 per cent of the cash consideration received at €37.51 a share, according to a joint statement. Temasek will have this option available to it but, should it prefer cash only, then Moncler will pay out €748m in total. "We're coming together at a challenging moment both for Italy and the world, when everything seems uncertain and unpredictable," said Remo Ruffini, chief executive of Moncler. "We need new energy and new inspiration to build our tomorrow." The deal values Stone Island, an Italian brand popular with celebrities such as rapper Drake and former Oasis lead singer Liam Gallagher, at 16.6 times its 2020 earnings before interest, tax, debt and amortisation. A consolidation in the luxury sector comes as the industry stages a recovery from coronavirus that has hit travel-dependent sales yet gained support from resilience in the Chinese market. Moncler's shares rose 3.4 per cent in early Milan trading on Monday, pushing their value up 19 per cent over the past month. Moncler has just announced that it has acquired Stone Island, in what is reported to be a €1.15 billion EUR ($1.39 billion USD) sale. Moncler has acquired 100% of Stone Island's shares, all to be paid in cash to be incorporated into Moncler in development of the company's new vision of luxury. Fostering a sense of belonging and community, Moncler is focusing on the diverse meanings and worlds of art, culture, music and sports. Together, the Italian names will be able to interpret luxury in their own way, continuing to evolve the cultural codes for new generations and reinforcing their position in the fashion industry. Moncler will also be introducing Stone Island to its unique culture of sustainability, which has awarded the label the title of Industry Leader of the Textile, Apparel and Luxury Goods sector in the Dow Jones Sustainability Indices World and Europe for two years in a row. At the same time, Remo Ruffini, Chairman and CEO of Moncler S.p.A. and Carlo Rivetti, Chairman and CEO of Stone Island will continue to grow and respect the autonomy of accelerating the development of both companies. See the comments from Remo Ruffini and Carlo Rivetti about the acquisition below. © Bloomberg Pedestrians walk by a Moncler SpA luxury fashion store in London, U.K., on Monday, Oct. 15, 2018. Gianni Versace SpA's sale to Michael Kors Holdings Ltd. leaves a dwindling number of independent global fashion brands still up for grabs. (Bloomberg)--Italian luxury group Moncler SpA agrees to buy its Italian rival Stone Island for 1.15 billion euros ($1.39 billion) in cash and shares. Moncler, known for its skiwear and fashionable winter jackets, will initially buy about 70% of Stone Island's owner SPW from Chief Executive Carlo Rivetti and other members of his family, according to the statement. It will buy the remaining 30% from Singapore's state investor Temasek. With Stone Island, the Italian company, which was approached for a takeover by Kering SA last year, is further expanding in its home territory and in the sportswear industry. "We're coming together at a challenging moment both for Italy and the world, when everything seems uncertain and unpredictable," Remo Ruffini, 59, said in the statement. The deal values Stone Island at 16.6 times its 2020 EBITDA, which is expected to be 68 million euros. The Rivetti family is going to re-invest part of the proceeds to become a shareholder in Moncler. The Rivetti family will subscribe, for an amount equal to 50% of the proceeds, newly issued Moncler shares, an option also reserved for Temasek. Should Temasek decide to be paid in cash, only Moncler will pay 748 million euros. The luxury industry is set to shrink less than some had feared this year as resilient Chinese consumers and online shoppers mitigate damage from lockdowns, a november report from Bain & Co. said. For more articles like this, please visit us at bloomberg.com ©2020 Bloomberg L.P.