Italian fashion house Moncler will acquire its domestic competitor Stone Island in a huge €1.15 Billion ‘cash-and-share’ deal.
The story of Moncler and Stone Island was once one of fierce rivalry between two giants of Italian street and luxury fashion. Now they will form a partnership that seeks to find new life in the American and Asian markets.
Although the two entities will remain operationally autonomous, Stone Island will join forces with Moncler after a two part transition is completed. First, moncler receives 70% of Stone Island from chief executive Carlo Rivetti and his family. Then the remaining 30% comes once Singapore state backed investor ‘Temasek’ has finalised the purchase.
When asked about the deal, Moncler chief executive Remo Ruffini stated, “Luxury is changing, and we want to speak to younger people”. In response, Mr Revetti asserted that Stone Island will now “with greater strength than ever, meet the challenges we all face”.