Monclerâs Chairman and CEO Remo Ruffini is tightening his control of the outerwear specialist after striking a deal with LVMH, which will take a stake in the Ruffini investment company that is Monclerâs biggest shareholder.
The deal also strengthens French group LVMHâs dominance of the global luxury sector. Milan-based Moncler, one of the industryâs biggest success stories in recent years, had been seen as a potential acquisition target or merger candidate for rival luxury groups seeking to expand.
Under the deal announced late on Thursday, LVMH purchased a 10 percent stake in Double R, the investment vehicle controlled by the CEOâs Ruffini Partecipazioni Holding, which currently has a 15.8 percent stake in Moncler.
Double R will increase its stake in Moncler up to 18.5 percent over the next 18 months, thanks to the funding provided by LVMH that will increase its investment in Double R up to 22 percent, Ruffini Partecipazioni Holding and LVMH said in a statement.
Over the last nine months, two investors in Double R had exited the vehicle and were paid with Moncler shares, which had reduced Ruffiniâs control of the company.
âThis partnership between Ruffini Partecipazioni Holding and LVMH, the worldâs largest luxury group, will reinforce Remo Ruffiniâs position as the largest shareholder of Moncler,â the companies said.
By Elisa Anzolin and Mimosa Spencer
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