French luxury teams up with Italian fashion. lvmh he jumped on Moncler, adding another Italian jewel to its already prestigious collection of over 70 brands. The French luxury giant has in fact acquired 10% of Double R, the holding company that allows the president and CEO of Moncler Remo ruffini to control 15,8% of the famous down jacket brand, which closed with almost 2023 billion in revenues in 3 and is now worth over 14 billion on the stock exchange. The market's reaction was immediate: the Moncler title made a nice jump of 9,7% to Business Squarewhile a Paris lvmh earns almost 3%.
Lvmh and Moncler: the details of the agreement
LVMH has not revealed how much it has invested, but what is certain is that this support will allow Remo Ruffini to consolidate his hold on Moncler, just as Carlo Rivetti, founder of Stone Island (a brand acquired by Moncler four years ago), steps aside. The agreement between Ruffini and Bernard Arnault, founder and ceo of LVMH, in fact, it provides that the holding Double R can increase its participation in Moncler up to 18,5% over the next 18 months, through a stock purchase plan well orchestrated.
To achieve all this, funds will be needed, and this is where LVMH comes in: the French fashion house is ready to make the necessary resources available, with the option to increase its participation in Double R up to 22%.
That's not all: Arnault and Ruffini have signed a shareholder agreement, which keeps Ruffini firmly in control of Double R, but grants LVMH some leverage, such as the appointment of two members to the holding company's board of directors and one to the Moncler board. This balanced governance will allow both parties to work together towards common goals, with Ruffini maintaining strong leadership.
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“This partnership provides the stability needed to realize my vision for the future,” said a satisfied Remo ruffini. And who can blame him? He has long admired Bernard Arnault for his “entrepreneurial spirit” and his “deep understanding of luxury,” and now it seems that the two are betting everything on a long-term collaboration for Moncler and its brands.
The Bernard Arnault expressed his satisfaction, declaring: “Moncler is one of the most significant entrepreneurial success stories in the industry over the last twenty years”, the magnate certainly knows potential when he sees it. And he did not spare compliments: “Remo Ruffini’s vision and leadership are extraordinary and I am delighted to invest in his holding company to support the independence of the Moncler group”.
This new alliance promises to take Moncler to new heights, with a well-defined strategy and strong financial support, demonstrating that Made in Italy continues to be attractive even to luxury giants.
