Moncler CEO strengthens grip on company with LVMH deal

Date:

MILAN/PARIS (Reuters) – Moncler’s 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 Moncler’s biggest shareholder.

The deal also strengthens French group LVMH’s dominance of the global luxury sector. Milan-based Moncler, one of the industry’s 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% in Double R, the investment vehicle controlled by the CEO’s Ruffini Partecipazioni Holding, which currently has a 15.8% stake in Moncler.

Double R will increase its stake in Moncler up to 18.5% over the next 18 months, thanks to the funding provided by LVMH that will increase its investment in Double R up to 22%, 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 Ruffini’s control of the company.

“This partnership between Ruffini Partecipazioni Holding and LVMH, the world’s largest luxury group, will reinforce Remo Ruffini’s position as the largest shareholder of Moncler”, the companies said.

(Reporting by Elisa Anzolin and Mimosa Spencer; Editing by Jamie Freed)

Share post:

Popular

More like this
Related

23-goal target makes decision regarding Arsenal offer amid interest from Euro giants

Gyokeres could transform ArsenalThe striker has scored 23 goals...

‘One action might decide this game’ – Frank on Everton test

Brentford manager Thomas Frank believes there will be an...

Dharmendra Pradhan, Mansukh Mandaviya Launch ‘Jobs at Your Doorstep’ Report by World Bank

New Delhi: Union Minister for Education, Shri Dharmendra Pradhan,...

WNBA coaching carousel latest: Will the Wings, Mystics or Sun be next to hire?

The two latest WNBA head coach hirings might be...