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LVMH and Moncler chairman and CEO Remo Ruffini announced a partnership that will reinforce Ruffini’s position as the largest shareholder of Moncler, according to a press release LVMH and Ruffini Partecipazioni Holding sent out jointly on Thursday.
LVMH purchased a 10 per cent stake in Double R, the investment vehicle controlled by Remo Ruffini’s holding company, Ruffini Partecipazioni Holding, which owns a direct stake in Moncler equal to approximately 15.8 per cent. That represents around 1.6 per cent of Moncler, according to Citi. LVMH now has the right to appoint two members to the board of Double R and one member to the board of Moncler.
“Moncler has been one of the most significant entrepreneurial success stories in the industry over the past twenty years,” Bernard Arnault, chairman and CEO of LVMH, said in a statement. “Remo Ruffini’s vision and leadership are remarkable, and I am delighted to invest in his holding company to reinforce his position as leading shareholder in Moncler and support the independence of the Moncler group.”
Under the terms of the transaction, Double R will increase its stake in Moncler up to a maximum of 18.5 per cent through further purchases of Moncler shares over a period of approximately 18 months. The funding of such purchases will be provided by LVMH, which will increase its investment in Double R up to a maximum of approximately 22 per cent (or approximately 4 per cent of Moncler). The governance structure confirms Ruffini’s sole control over Double R.
“This partnership reinforces Double R’s position in Moncler and provides the stability needed to execute my vision for the future. I have long admired Bernard Arnault’s entrepreneurial spirit and unique understanding of the luxury sector, and I am delighted he so clearly supports my long-term ambitions for our group’s extraordinary brands,” Ruffini stated.
Ruffini — a second-generation fashion entrepreneur —acquired Moncler in 2003. Moncler Group went public in 2013 with a “survive fashion” motto and today has a market capitalisation of €14.33 billion.
Arnault’s reputation as a dealmaker is well established — LVMH counts 75 brands and snapped up Tiffany Co. for $15.8 billion in 2020. Still, it’s a nice coup for the world’s largest luxury player as Moncler attracts a lot of attention and has held up well in the luxury downturn. Sales for the brand were up 15 per cent year-on-year to €2.98 billion for the year ended 31 December 2023, driven by a surge in Asia. In the second quarter, Moncler brand’s revenue was up 5 per cent.
It marks the first major deal in the luxury sector since Kering took a 30 per cent stake in Valentino last year.
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