Moncler Takes Full Control of Stone Island

MILAN — Moncler said on Tuesday evening, at the end of trading, that it has entered into an agreement with Venezio Investments Pte. Ltd., an indirect, wholly owned subsidiary of Singapore’s state investor Temasek Holdings Private Ltd. to acquire 30 percent of Sportswear Company SpA, parent of the Stone Island brand, for 345 million euros.

This development was expected, as reported, when Moncler in December revealed it was acquiring 70 percent of the company from Stone Island chairman and chief executive officer Carlo Rivetti and his family, and it planned to take full control of the brand.

The agreement was signed between Moncler and Rivetex Srl, a company referable to Carlo Rivetti, owner of a stake equal to 50.1 percent of Sportswear Company’s capital and other shareholders of SPW, referable to the Rivetti family, owners of a stake equal to 19.9 percent of SPW’s capital. 

The closing of the transaction is expected to take place by March 31.

The agreement values Stone Island at 1.15 billion euros, corresponding to a multiple of 16.6 times 2020 EBITDA and a multiple of 13.5 times the estimated 2021 EBITDA.

Moncler has called an extraordinary shareholders’ meeting for a capital increase reserved for Rivetti Shareholders and Temasek on March 25.

At the closing date, the Rivetti shareholders and Temasek will subscribe an amount equal to 50 percent of the sale amount through the subscription of a share capital increase reserved for them for an amount of 402.5 million euros and 172.5 million euros.

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The Rivetti Shareholders and Temasek will receive a total of more than 15.3 million newly issued Moncler shares, of which 10.7 million will be issued in favor of the Rivetti shareholders and almost 4.6 million shares, in favor of Temasek at a set price of 37.51 euros per share, which corresponds to the average price of shares in the last three months.

All the newly issued shares will be subject to a lock-up restriction for 12 months following their subscription and, for 50 percent of them, for a further six months.

Temasek owns shares in both SPW and Moncler, both directly and through Ruffini Partecipazioni.

At the same time, Rivetti and the other SPW shareholders have reached an agreement with Ruffini Partecipazioni Holding Srl, wholly owned by Remo Ruffini, whereby all newly issued Moncler shares received by them will be transferred to Ruffini Partecipazioni Srl, which owns a 22.5 percent stake in Moncler, with the goal to contribute to the integration between the two companies.

It is also expected that Rivetti, following the closing of the transaction, will join the board of Moncler.

Ruffini will continue to exercise control over Ruffini Partecipazioni, which is expected to change its name to Double R Srl.

Remo Ruffini, chairman and CEO of Moncler, said upon the acquisition that the goal with Stone Island was to redefine luxury, “far from the traditional stereotypes.”

Rivetti earlier this week told WWD that he saw the acquisition first and foremost as a “very strong signal for Italy” — echoing Ruffini’s own belief. “Joining our forces together will make us stronger and this is very important — it has given us a resounding added value,” and especially in the current scenario.

The company is working on the integration of Stone Island and focusing on its direct-to-consumer potential. With the help of Moncler, Stone Island is poised to expand in the U.S. and Asia and beef up its retail network.

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