LVMH’s recent investment in Moncler marks a significant collaboration in the luxury fashion sector.
- The acquisition involves LVMH purchasing a 10% stake in Double R, Moncler’s chief shareholder.
- Double R, led by Moncler CEO Remo Ruffini, will increase its holding in Moncler with LVMH’s support.
- LVMH is set to appoint representatives to the boards of Double R and Moncler, influencing strategic decisions.
- This partnership supports Ruffini’s strategic vision for Moncler’s future while strengthening LVMH’s luxury market presence.
LVMH, a leader in the luxury goods industry, has recently acquired a 10% stake in Double R, the investment company controlled by Moncler CEO Remo Ruffini. This acquisition underscores LVMH’s strategic intent in the competitive luxury fashion sector. Double R itself holds a substantial 15.8% share in Moncler, the renowned Italian luxury brand.
The partnership is set to evolve, with Double R planning to increase its stake in Moncler to a maximum of 18.5% over the next 18 months. Funding for these acquisitions is backed by LVMH, which has also secured an option to raise its stake in Double R to 22%, thereby holding a 4% indirect stake in Moncler.
Strategically, this move allows LVMH to appoint two members to the board of Double R and one member to Moncler’s board. This board representation will enable LVMH to influence significant strategic decisions, bolstering Moncler’s market position and stability, which Remo Ruffini views as crucial for realising his long-term vision for the brand.
Ruffini expressed his admiration for Bernard Arnault, the CEO and Chairman of LVMH, highlighting Arnault’s entrepreneurial spirit and deep understanding of the luxury industry. Ruffini is hopeful that Arnault’s support will enrich Moncler’s future strategies and market performance.
Bernard Arnault praised Moncler as a remarkable success story under Ruffini’s guidance over the past two decades. He reiterated his confidence in Ruffini’s leadership and strategic direction, committing LVMH’s resources to reinforce Moncler’s standing in the luxury market.
LVMH’s investment in Moncler symbolises a strategic alliance poised to influence the luxury fashion industry’s future.
