Eurazeo exits Moncler in €445m deal

The GP sold its 12,199,626 shares at a price of €36.5 each for a total amount of approximately €445m. Eurazeo generated total proceeds of €1.4bn from its investment in Moncler, a cash-on-cash multiple of 4.8x and an IRR of 43%, according to a statement. On this last placement, the firm's cash-on-cash multiple was close to 10x.

The sale ends an eight-year holding period for Eurazeo, which acquired a 45% stake in Moncler for €418m, in a deal that gave the company a total equity value of around €930m and an enterprise value of €1.2bn, equal to 12x its 2010 EBITDA.

The company was listed on the Milan stock exchange in December 2013 in a €2.6bn IPO, and has now reached a market capitalisation close to €10bn.

Under Eurazeo's ownership, Moncler expanded its global footprint, opened multiple stores around the world and enlarged its product offering with a new range of outerwear and accessories. The brand opened 133 new points of sale and 55 wholesale mono-brand stores, and increased its sales outside Italy from 43% to 85% of the total. The company's revenues grew from €280m in 2010 to €1.4bn in 2018 and its EBITDA increased from €91m to €500m.

Bank of America Merrill Lynch and Citigroup Global Markets acted as joint bookrunners in connection with the offering, while Lazard Frères acted as financial adviser to Eurazeo.

Previous funding
Moncler was initially backed in 2006 by Mittel Private Equity, Progressio and Istituto Atesino di Sviluppo (ISA), which acquired 35%, 22% and 4% in the company, respectively, while CEO and chair Remo Ruffini retained a 38% stake and the management took a 1% stake.

Subsequently, Carlyle bought a 48% stake in the business in 2008, in a deal that valued the company at approximately €460m. The remaining 52% stake was split between Mittel, Progressio and ISA – which retained a combined 13.5% – and CEO Remo Ruffini, with 38%, while the management reduced its stake to 0.5%.

Eurazeo acquired a 45% stake in Moncler in June 2011. The transaction saw existing shareholders Carlyle and the firm's chair and creative director Remo Ruffini reduce their stakes in the company to 17.8% and 32%, respectively, while Progressio retained a 5% stake.

Tamburi Investment Partners alongside other co-investors backed Moncler in August 2013. The transaction saw Tamburi buy a 14% stake in Ruffini Partecipazioni, CEO Remo Ruffini's holding company, which controlled 32% in Moncler.

Moncler was listed on the Italian stock exchange in December 2013. The IPO comprised 30.72% of the company's share capital and gave Moncler an enterprise value of around €2.6bn. Eurazeo saw its stake reduced to 23.3%, Carlyle to 7.13% and Progressio to 1.26%.

Carlyle sold its remaining 7.13% stake for €215m in June 2014, while a year later Eurazeo sold a 7.8% stake in the business for €340m, generating €280m in net proceeds and reducing its stake to 15.5%.

Temasek Capital and a private investor acquired a 6.44% stake in the company for around €257.8m in 2016, via an investment in Ruffini Partecipazioni.

Eurazeo sold an additional 6% stake in Moncler in September 2016 and a 3.34% stake in October 2017 for €208m. The transaction generated €188m in net proceeds for the firm, equating to roughly 6.7x its original investment.

Company
Moncler was established in 1952 in Monestier-de-Clermont, near Grenoble, and is currently headquartered in Milan. The company specialises in designing, manufacturing and distributing luxury clothing and accessories through its boutiques, international department stores and multi-brand outlets. In 2018, Moncler generated EBITDA of €500m from revenues of €1.4bn, up 19% on 2017.

People
Eurazeo – Virginie Morgon (CEO).
Moncler – Remo Ruffini (CEO, chair).

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