Italian luxury group Moncler will buy its smaller rival label Stone Island in a two-step acquisition deal giving the company a value of 1.15 billion euros (US$1.39 billion).
In a first step, Moncler, a traditional skiwear brand which has turned into a trendy fashion label, will buy just over 50 per cent of the outerwear brand from owner and CEO Carlo Rivetti and a further 19.9 per cent from other members of his family.
The purchase will be paid in cash and in shares. Carlo Rivetti and his family will subscribe for an amount equal to 50 per cent of the consideration, or 10.7 million new Moncler shares, at a set price of 37.51 euros per share, a joint statement said.
Moncler then aims to acquire the entire share capital of Stone Island, buying the further 30 per cent held by Singapore’s state investor Temasek.
The deal is expected to close by the first half of next year.
Temasek, a fund which also owns a small share in Moncler, will be given the same conditions offered to the Rivetti shareholders and will also be given the choice of taking newly-issued Moncler shares for up to 50 per cent of the cash consideration.
Should Temasek decide to be paid in cash only, Moncler will pay 748 million euros.
Moncler chairman and CEO Remo Ruffini said the company would remain “cash neutral or cash positive” even after the deal, speaking to reporters in a conference call.
“We are coming together at a challenging moment both for Italy and the world, when everything seems uncertain and unpredictable,” Ruffini said in the statement. “But I believe it is precisely in these moments that we need new energy and new inspiration to build our tomorrow,” he said.
Ruffini said the two brands would remain independent. The statement said Rivetti would join Moncler’s board.
