(Bloomberg) — LVMH is investing in designer outdoor brand Moncler SpA in a deal that gives the French luxury brand a seat on the Italian company’s board of directors.
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LVMH Moet Hennessy Louis Vuitton SE will buy a 10% stake in Double R, an investment company controlled by Moncler Chairman and CEO Remo Ruffini, which owns a 15.8% stake in Moncler, the companies announced in a statement on Thursday. did. Financial terms of the deal were not disclosed.
Moncler has become a popular brand, with down jackets priced at 5,500 euros (about $6,147). Earlier this year, the label held a glamorous fashion show in the Swiss mountain town of St. Moritz, drawing in celebrities such as Kate Moss and Anne Hathaway.
“Moncler has been one of the most important entrepreneurial success stories in the industry over the past 20 years,” Bernard Arnault, LVMH’s controlling shareholder and CEO, said in a statement. “I support independence,” he added.
Under the terms of the agreement, LVMH will increase its investment in Double R by up to 22%, and the investment vehicle will be able to increase its stake in Moncler by up to 18.5% over the next 18 months.
Ruffini will continue to drive the company’s future development plans, the statement said. Moncler also owns Stone Island, a label it acquired about four years ago.
LVMH intends to support Ruffini’s vision as a “long-term stable minority shareholder” in Double R, the company said. As a result of the deal, LVMH will have one director at Moncler and two at Double R.
LVMH has made various investments in Italian brands over the years. About 10 years ago, we acquired Loro Piana, a manufacturer specializing in cashmere. LVMH also owns a 10% stake in Tod’s Spa, which it took private earlier this year with Arnault-backed private equity fund L. Catterton.
About five years ago, Moncler held exploratory talks toward a deal with Kering SA, the owner of Gucci.
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