Moncler Buys Rival Stone Island for $1.4 Billion

Italian luxury jacket maker Moncler has agreed to purchase its smaller domestic rival Stone Island in a 1.15 billion euros ($1.4 billion) cash and stock deal, according to a press release on Monday.

Italian luxury jacket maker Moncler has agreed to purchase its smaller domestic rival Stone Island in a 1.15 billion euros ($1.4 billion) cash and stock deal, according to a press release on Monday.

The major merger aims to consolidate the two firms. This move is also seen as a way for the high-end brands to gain new customers as the pandemic crisis continues to pressure businesses in the fashion and clothing industry due to decimating demands.

Moncler is going to purchase 70 percent of the parent company of high-end sportswear manufacturer Stone Island from Chief Executive Officer Carlo Rivetti and his family. It will then acquire the remaining 30 percent from Singaporean state-backed investor Temasek.

“We’re coming together at a challenging moment both for Italy and the world, when everything seems uncertain and unpredictable,” Moncler Chairman and CEO Remo Ruffini said in a statement. “We can’t run after the future, we must build it, and I think there are good opportunities at difficult times.”

In Moncler’s statement, Rivetti would be joining its supervisory board as part of the deal.

“This merger takes shape in a difficult phase for Italy and the world, in which everything seems uncertain. But I believe that it is precisely in these moments that you have to find new energies and new inspiration to plan the future,” Ruffini added.


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