Financial advisor to Moncler in the acquisition of Stone Island
On 7 December 2020 Moncler S.p.A. (“Moncler”) announced the acquisition of a 70% stake in Sportswear Company S.p.A. (“SPW”), owner of the Stone Island brand, from the Rivetti family, for a consideration of €1,150m (4.70x 2020A Sales; 16.6x 2020A EBITDA; 13.5x 2021E EBITDA).
On 23 February 2021 Moncler also announced an agreement with Venezio Investments (subsidiary owned indirectly, 100%-controlled by Temasek) to acquire the other 30% of SPW on the same terms and conditions agreed with the Rivetti family.
Moncler is a listed company (market capitalization prior to the deal announcement €11.0bn) operating in the luxury clothing and accessories sector. In 2020 Moncler reported total sales of €1,440m, EBITDA adj. (excluding IFRS 16 impact) of €461m (EBITDA margin 32.0%), and net cash (also excluding IFRS 16 impact) of €855m.
SPW is an unlisted company offering a wide range of sportswear clothing and accessories through the Stone Island brand. In 2020 SPW reported total sales of €240m, EBITDA di €68mln (EBITDA margin 28.4%) and net cash of approx. €19m. SPW is owned by Rivetex (a company owned by Carlo Rivetti, which owns a 50.10% stake in SPW) and other members of the Rivetti family (who own 19.90% of SPW), with the other 30% owned by Temasek.
The consideration will be paid in a combination of cash and new Moncler shares, with the agreement being that the SPW and Temasek shareholders will subscribe for 15.3 million new Moncler shares (50% of the consideration) at a price of €37.51 per share (representing the arithmetical average in the three months prior to the announcement).
Remo Ruffini and Carlo Rivetti share the same vision of creating the leading Italian luxury clothing player to drive further consolidation in the luxury sector.
As well as acting as financial advisor to Moncler on the deal, Mediobanca also issued a fairness opinion for the Board of Directors of Moncler on the share price for subscription to the reserved rights issue, of €37.51 per share (cf. attached press release).
The deal confirms Mediobanca’s strong relationship with Moncler and Remo Ruffini, its capability in managing complex transactions in very short periods of time, and its long-standing and acknowledged track record in the luxury sector.