Moncler SpA, the Italian fashion label, has agreed to acquire the renowned sportswear brand Stone Island for US $ 1.4 billion in cash and shares.
While announcing the same on Monday (7 December), Moncler said that it will buy 70 per cent of Stone Island from its owner Carlo Rivetti. The remaining 30 per cent it, reportedly, plans to buy from Singapore’s state investor Temasek.
The deal, in all likelihood, is expected to be finalised in the first half of 2021.
Through the deal, Moncler may help Stone Island enhance its distribution. Notably, Moncler will get 77 per cent of its revenue through its own 218 stores, while Stone Island will get three quarters of sales from wholesale partners. Stone Island has 24 stores.
Expressing happiness over the deal, Remo Ruffini, Chairman and Chief Executive, Moncler, said that though the deal comes in these tough times, it will help Stone Island expand its international reach especially in Asia and the Americas.
Known mainly for its skiwear, Moncler has its headquarters in Milan and generated revenue of €1,420.1 million in 2018.
