Amazing Return On Investment Moncler How To Get Eurazeo Off Net After 1 Billion 400 Million Euros?

Italy's luxury feather down brand Moncler is on the right track, and investors who support their growth have also made substantial returns and started to cash in.

Private equity fund Eurazeo said in a statement on Wednesday that 8 years after its stake in Moncler, it has sold 4.8% remaining shares, totaling 12 million 200 thousand shares, at a price of 36.5 euros per share, with a total paction price of about 445 million euros.

After the paction is completed, Eurazeo will no longer have the right to vote for Moncler, and CEO Virginie Morgon will remain in the Advisory Committee.

In May 2011, Eurazeo and its partners invested 1 billion 330 million euros in acquiring Moncler 45% shares.

At present, Eurazeo is still a shareholder of luxury electronics platform Farfetch, luxury resale platform Vestiaire Collective, Nest Fragrances and Pat McGrath Labs.

Virginie Morgon revealed that the total revenue generated by the group's investment in Moncler over the years was 1 billion 400 million euros, 4.8 times that of the initial investment.

With the support of Eurazeo, Moncler, which only focused on Italy, began to expand its international layout and formally enter the Chinese market and grow into a real luxury brand.

Moncler's total sales increased from 280 million euros in 2010 to 1 billion 420 million euros last year. Interest rates before interest tax depreciation and amortization rose from 91 million euros to 500 million euros, and the international market income increased from 57% in 2011 to 85% now.

As Moncler performance grew, there was market value.

It is reported that at the end of 2013, after the listing of the brand, Eurazeo sold 11.5% of the shares and cash in about 2.5 to 300 million euros.

In 2015, Moncler's share price surged by more than 50% in just four and a half months, and Eurazeo sold another Moncler 7.8% stake worth about 340 million euros.

As a result of the strong growth of Moncler performance, Eurazeo again decided to sell shares in 2016 and sold 7.8% and 6% shares successively in 2016.

In October 2017, after Moncler recorded double-digit growth for 15 consecutive quarters, Eurazeo also sold a Moncler 3.34% stake, earning about 208 million euros, earning 188 million euros.

Some analysts pointed out that the stable growth of Moncler performance for 4 consecutive years is related to the operation mode of non family businesses.

Founded in 1952, Moncler started its business with outdoor mountaineering products such as tents and sleeping bags. At that time, it was no longer related to luxury. After being acquired by Remo Ruffuni, a fashion family in 2003, it gradually became fashionable and formally entered the luxury industry.

In 2006, Remo Ruffuni invited Valentino original creative director Alessandra Facchinetti to launch the high-end product line Moncler Gamme Rouge Line for the brand, and 2009 high-end men's wear Gamme Bleu was formally launched.

In order to get more recognition from fashion people, Moncler frequently shows up in Paris fashion week and Milan fashion week, and has been included in the regular schedule of Milan fashion week and Paris fashion week.

In order to cater for the young consumers' sense of novelty, Moncler abruptly decided to cancel the high-end fashion series Gamme Bleu and Gamme Rouge in November 2017 instead of its new cooperative project "Moncler Genius", released in February last week in Milan fashion week.

The first group of designers involved in the project included Teng Yuan Hao, Pierpaolo Piccioli, Craig Green and Francesco Ragazzi, 8 gifted creative talents. They designed 8 different series for Moncler respectively, creating great exposure and flow for the brand.

In February 20th this year, Moncler's second Moncler Genius fashion show once again aroused widespread concern in the industry. More foreign media praised it as the most creative show of Milan fashion week.

The brand has released 10 cooperation series, inviting British designer Richard Quinn, 1017 ALYX 9SM founder Matthew Williams, original Celine designer Veronica Leoni, original MSGM and Acne Tan men's wear designer, etc. to join hands, and also cooperate with Italy luxury leather brand to design handbag series.

Remo Ruffini shows that Moncler is striving to establish deeper contacts with consumers and meet its various fashion needs. "Moncler Genius can be regarded as a global statement, creating a common sense of value, interacting with global consumers in an efficient way, and providing consumers with unique shopping experience through all contacts."

Some analysts pointed out that down products as functional products themselves are very limited by seasons. But with the help of luxury attributes and fashion initiatives, Moncler products can break this shackle, even in the off-season June, it can also have a market. Consumers are not entirely from the practical demand perspective when buying their products. This is like the reason people open Land Rover in the city and buy hermes bags, which virtually lengthens the attention period which only winter in the whole year.

It is worth noting that for Remo Ruffini, he is not satisfied with the success of Moncler. After having a good economic status and independent status, his individual has already focused on other potential brands in the industry, trying to build a Italy luxury oligarch.

In October last year, he bought the Italy women's clothing brand Attico through the name of Archive Vehicle.

In a more recent analysis, Reuters wrote that Remo Ruffini is expected to become the "Italy version of Bernard Arnault" and make Moncler a luxury Empire like the next LVMH.

As of press release, Moncler's market capitalization is close to 10 billion euros, 3 times that of the initial listing.

Author: Zhou Huining