Stone Island

History

2020: Moncler was purchased by Stone Island for €1.15 billion

At the beginning of December, 2020 it became known that Moncler buys Stone Island, the competing producer of high-quality sportswear, for €1.15 billion cash and actions. Both brands specialize in production of qualitative outerwear and are based in Italy.

We integrate at the difficult moment both for Italy, and for the world in general when all it seems indefinite and unpredictable. But I consider that at such moments we need new energy and new inspiration — the CEO of Moncler Remo Ruffini commented on the transaction.

The majority of the European countries, except for Switzerland, ordered to close ski resorts that undermined one of the markets on which Moncler depends. Besides, COVID-19 enhanced dependence of the industry of luxury on e-commerce. For the companies involvement of youth began to be of particular importance, young buyers from generation Z the first returned to shops after recession of the first wave of a pandemic.

The producer of expensive Moncler clothes purchases the competing Stone Island for €1.15 billion

Moncler is guided by it, purchasing Stone Island - the company diversifies the products at the expense of more technological brand. To Moncler it is known as the producer high-quality alpine skiing and outerwear, and Stone Island represents the known brand of street clothes which is popular even among football fans and rappers.

Moncler is going to redeem 70% of Stone Island SPW parent company from the chief executive officer Carlo Rivetti and other members of his family. The company intends to redeem the remained 30% of shares later from the public Singapore investment fund Temasek. Upon primary purchase a half of the amount will be paid by cash, and a half stocks of Moncler. Besides, under the terms of the transaction, Rivetti will join the board of the united company. It is expected that the deal will be closed in the first half of 2021, after consolidation both brands will save the names.^[1]

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