The private equity firm Carlyle has agreed to buy a 48.0 percent stake in Moncler, in a deal estimated to be worth about €220 million, through a fund called Carlyle Europe Partners III. The contract still needs to obtain regulatory clearance and is expected to be closed by the end of the year.
Moncler is estimated to be worth about €405 million and has €55 million in debt, giving it an enterprise value of €460 million. The Italian company manufactures upmarket sportswear under the brands Moncler, Henry Cotton’s, Marina Yachting, and Coast, Weber & Ahaus. It also holds a license for Cerruti sports clothing.
Moncler closed 2007 with sales of €254 million, of which 40 percent were generated outside Italy, and is expected to finish this year with revenues of €290 million and an operating income before amortization and depreciation (EBITDA) of more than €50 million.
Before the deal, the head of Moncler, Remo Ruffini, had 38.0 percent of the company’s shares, Mittel Private Equity had 35.0 percent, Progressio SGR had 22.0 percent, ISA had 4.0 percent and the group’s management had 1.0 percent.
With Carlyle’s arrival, Ruffini, who is also the company’s creative director, will retain his stake and continue to manage Moncler, but Mittel, Progressio and ISA’s combined stakes will fall to 13.5 percent and the management’s share will drop to 0.5 percent.
Ruffini took over Moncler in 2003 and positioned the French brand, well known for its down coats, in the top segment of the fashion sport market. In the last three years, the brand’s sales have been rising at an annual rate of 17 percent.
Moncler’s products are available in upmarket shops and department stores as well as in six company-owned boutiques in Italy, France and Switzerland. The last one opened in Chamonix a few weeks ago. Across the Alps, Moncler’s store in Courmayeur is moving to another larger location. Three more boutiques are scheduled in Milan, Gstaad and Aspen, Colorado.
Carlyle aims to support Moncler in its expansion and expects its sales to reach about €500 million in four to five years’ time, 50 percent outside of Italy, thanks to new international partnership agreements. Carlyle feels that Moncler could be listed on the stock exchange at the end of the expansion phase.
Last year, Carlyle lost a battle with the investment fund Permira for control of Valentino Fashion Group. The private equity fund believes that the Italian fashion industry offers some juicy investment opportunities and has publicly expressed interest in the designer Roberto Cavalli.
