1. News
December 7, 2020

Moncler plans to acquire rival Stone Island for €1.15bn

Luxury fashion brand Moncler has revealed plans to acquire rival sportswear brand Stone Island in a two-step acquisition deal.

Luxury fashion brand Moncler has revealed plans to acquire rival sportswear brand Stone Island in a two-step acquisition deal.

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As part of the €1.15bn transaction, Moncler will initially purchase a little over 50% of the outerwear brand from owner and CEO Carlo Rivetti, as well as another 19.9% from other members of his family.

Additionally, the retailer will try to acquire the entire share capital of Stone Island, which includes the remaining 30% held by Singapore’s state investor Temasek.

The deal will reportedly conclude in the first half of 2021.

Following the acquisition, Moncler would remain “cash neutral or cash positive”, Reuters reported citing the company’s chairman and chief executive Remo Ruffini.

Speaking to reporters during a conference call, Ruffini said: “I can see Stone Island growing in essential markets, such as Asia and the Americas, still unexplored by them, which we know well.

“It is precisely in these moments that we need new energy and new inspiration to build our tomorrow.”

This deal values Stone Island 16.6 times 2020 expected EBITDA of €68m.

Rivetti is reportedly investing a portion of the proceeds in exchange of shares in Moncler.

Following the deal, the two brands will remain independent and Rivetti would join Moncler’s Board of Directors.

The company could improve the distribution of Stone Island.

In July, Moncler strengthened its digital strategy and plans to double the share of its online business in the next three years.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.