By Elisa Anzolin and Mimosa Spencer
Moncler's Chairman and CEO Remo Ruffini is taking charge with a strategic deal with LVMH, solidifying his control over the outerwear specialist and strengthening LVMH's position in the luxury sector.
In a move that has caught the attention of investors, LVMH has acquired a 10% stake in Double R, Ruffini's investment vehicle, which already holds a 15.8% stake in Moncler. This partnership will see Double R increase its stake in Moncler to 18.5% over the next 18 months, with the backing of funding from LVMH that will boost its investment in Double R to 22%.
Recent exits of investors in Double R had weakened Ruffini's control over Moncler, but this deal with LVMH will strengthen his position as the largest shareholder of the company. Additionally, LVMH will have the right to appoint board members to Double R and a director to Moncler's board.
Despite concerns about a slowdown in the luxury sector, particularly in China, Moncler has shown resilience with 11% revenue growth in the first half of the year, driven by strong performance in Asia.
Analysis:
The partnership between Moncler and LVMH signifies a strategic move by Ruffini to maintain control over the company and fend off potential acquisition attempts. This deal not only strengthens Ruffini's position but also enhances LVMH's presence in the luxury market.
For investors, this development could signal stability and growth prospects for Moncler, as the company continues to perform well despite challenges in the luxury sector. The increased investment from LVMH could provide additional resources for Moncler to expand its market presence and drive further growth.