Moncler to buy Stone Island by mid-2021
Milan-based luxury outerwear brand Moncler announced in early December that it would purchase smaller, Ravarino-headquartered, rival Stone Island in a two-step acquisition deal to be completed by the first half of 2021.
The deal values Stone Island at €1.15 billion (around $1.39 billion).
Moncler will firstly purchase just over 50% of Stone Island from CEO Carlo Rivetti and a further 19.9% from other members of Mr Rivetti’s family, before aiming to buy the remaining 30% of Stone Island shares from Singaporean state investor Temasek, which also owns a small share in Moncler.
All Stone Island shareholders will be paid in cash and in shares (at an amount equal to 50% of the consideration or 10.7 million new Moncler shares, at a set price of €37.51 per share). Should Temasek wish to be paid in cash only, Moncler will pay €748 million.
Moncler chairman and CEO, Remo Ruffini, told reporters during a conference call on December 7 that Moncler would remain “cash neutral or cash positive” following the deal.
While the two brands will remain independent, they will jointly “offer new generations a new concept of luxury”, Mr Ruffini said.
Mr Rivetti will join Moncler’s board of directors once the deal has closed.
Image: Stone Island.
