Singapore: Temasek acquires 30% of Italian fashion firm Stone Island

Graphic from Stone Island homepage.

Singapore state investment firm Temasek Holdings is set to acquire a 30 per cent equity interest in fashion retailer Stone Island. Financial terms of the transaction were not disclosed.

Stone Island will use the proceeds to finance the international growth of its men’s sportswear brand.

Temasek’s last major investments in the fashion industry were its participation in Farfetch’s $110 million Series F round, and its acquisition of a 26.8 per cent stake in Italion fashion firm Moncler in collaboration with Juan Carlos Torres, the chairman of the travel retail group Dufry.

Carlo Rivetti, the founder and majority holder of Sportswear Company, the parent of Stone Island, said, “I am truly satisfied for this partnership with one of the world’s most established investment companies. I particularly appreciate Temasek’s investment strategy to participate in companies with strong growth potential, know-how and identity.”

The transaction will see Temasek guarantee the continuity and the autonomy of the Stone Island management team, which he says “has proven to successfully face and overcome our sector’s challenges.”

Temasek’s portfolio covers a broad spectrum of industries that include financial services, telecommunications, media and technology, as well as transport, agriculture, life sciences and property.

Founded in 1974 by Massimo Osti, Stone Island was acquired in 1983 by GFT, Rivetti’s family firm. GFT was among the largest Italian apparel manufacturers and later rebranded as the Sportswear Company.

Stone Island reported revenues of €109 million ($128.5 million) in 2016, up 26 per cent from 2015.

The investment comes at a time when divestments by the state investor are outpacing its investments. Increasingly, Temasek is making more private market bets amid pressure for higher investment returns that see it making larger bets and adding more unlisted stocks to its portfolio. Investment bank CIMB estimates that its portfolio will reach between $197.47 billion-$201.09 billion for the year ended March 31.

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