Moncler divests sportswear business to Emerisque

Karin Wasteson
11 November 2013

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PE-backed Moncler has sold Industries Sportswear Company to Emerisque Brands UK's Cavaliere Brands.

Italian clothing business Moncler is backed by listed French investment firm Eurazeo, Carlyle Group and Progressio Investimenti.

The firm wholly sold its sportswear division Industries Sportswear Company including the brands Marina Yachting, Henry Cotton's and Coast Weber & Ahaus. The division posted a €135m turnover in 2012.

Following the transaction, Moncler shareholders Ruffini Partecipazioni, Eurazeo and Carlyle all subscribed to a capital increase in Cavaliere Brands and acquired a 30% stake in its share capital.

Eurazeo acquired a 45% stake in Moncler for €418m in May 2011. The deal gave the group an enterprise value of €1.2bn. Existing shareholders Carlyle and Remo Ruffini, the group's chairman and creative director, retained stakes of 17.8% and 32% respectively.

The deal represented a partial exit for Carlyle, which acquired a 48% stake in the firm from Mittel Private Equity in August 2008. Carlyle paid approximately €200m for its stake in a deal that valued the company at €460m.

Mittel, Progressio and Istituto Atesino di Sviluppo backed the business in 2006. Remo Ruffini bought the company, of which he is now chairman, in 2003.

Moncler filed for an IPO in October this year. The Moncler flotation had originally been planned for June 2011, but was subsequently postponed.

Founded in 2004, Emerisque invests in the UK, the US and Hong Kong with a focus on acquiring medium-sized companies. Emerisque acquired MCS Italia (formerly Marlboro Classics) in April 2013. Its portfolio includes Lee Cooper, Hickey Freeman, Hart Schaffner Marx, Bobby Jones, Jack Nicklaus, Exclusively Misook, Christopher Blue, Palm Beach, Sansabelt and Monarchy.

Company
Moncler was founded in Monestier de Clermont, France, in 1952 and is currently based in Italy. Moncler produces and distributes its clothing and accessories collections Moncler Gamme Rouge, Moncler Gamme Bleu, Moncler Grenoble and Moncler Enfant.

The firm retails through a network of 122 branded shops and a wholesale distribution network. Turnover totalled €489.2m in 2012, with EBITDA hitting €161.5m. The company is active in more than 60 countries across Europe, Asia and North America.

People
Remo Ruffini is the chairman of Moncler.

Advisers
Vendor – Bank of America Merrill Lynch (Corporate finance); Latham & Watkins (Legal).
Acquirer – Banca Imi (Corporate finance); Equita SIM (Debt); Studio Alinovi Guiotto Ferrari & Mattiolo (Financial due diligence); Norton Rose Fulbright (Legal); Steptoe & Johnson (Legal) Booz & Company (Commercial due diligence).