Italian Fashion Brand Moncler Buys Stone Island for €1.15 Billion

It's not the first high profile brand acquisition in the last few weeks.
London, GB
Photo: A. Astes / Alamy Stock Photo

Fashion giant Moncler has paid €1.15 billion to acquire Stone Island, a rival Italian luxury brand.

Moncler will buy 70 percent from the company that holds a majority share, and the remaining 30 percent from Temasek, a Singaporean company that owns the remainder. The deal, expected to close by the middle of 2021, will leave Moncler in full control of the company.

However, Moncler – which began as a traditional skiwear brand, and is now best known for high-end winter jackets – has said the two brands will remain entirely independent. Remo Ruffini, Moncler’s Chief Executive, said: “We’re coming together at a challenging moment both for Italy and the world, when everything seems uncertain and unpredictable. We need new energy and new inspiration to build our tomorrow.”

The consolidation is coming at a time when the luxury fashion industry is beginning to recover after a coronavirus slump, partly because the Chinese market remained so resilient. Moncler’s share prices rose 3.4 percent on Monday, despite the fact coronavirus has all but shut down the ski industry, damaging one of its key markets.

The pandemic has also encourage the luxury fashion industry to focus more on e-commerce, along with appealing to younger customers, who were the first to return to brick-and-mortar stores. In light of this, it makes sense for Moncler to purchase Stone Island, which remains a desirable brand amongst millennials and Gen Z thanks to its association with celebrities like Drake and The Weeknd.

VF Corporation – the company that owns Timberland, Vans and the North Face – recently bought cult streetwear brand Supreme. Mergers and acquisitions are pretty common in times of economic crisis, so we can possibly expect to see more purchases like this in the fashion industry before long.