RAVARINO, Italy —Singapore's sovereign wealth fund Temasek is to acquire a 30 percent stake in Stone Island for an undisclosed sum.
It is the latest fashion investment for the company, which last year contributed to Farfetch's $110 million Series F funding round, and has also invested in Moncler and Dufry. It is understood that the investment will help the Italian men's sportswear brand expand its reach globally.
Stone Island's parent firm, Sportswear Company S.p.A., shared news of the agreement in an announcement on Monday. “I am truly satisfied for this partnership with one of the world’s most established investment companies," said Carlo Rivetti, Sportswear Company's founder and majority shareholder. "I particularly appreciate Temasek’s investment strategy to participate in companies with strong growth potential, know-how and identity."
Rivetti, who is both president and creative director of Stone Island, also highlighted Temasek's agreement to 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."
"With this operation I wanted to both capitalise on the work done in 35 years and to team with a partner to face the increasingly complex opportunities proposed by the markets," Rivetti said. "I am confident that the brand Stone Island will keep on with increased success its development, being able to count on a competent and attentive partner to the specifics of our business and with strong international relations.”
Stone Island was founded in 1982 by Massimo Osti whose now famous jackets were the result of an experiment with the same coated canvas used for military tarps. The company was acquired in 1983 by GFT, Rivetti's family firm, which was one of the largest apparel manufacturers in Italy and later became Sportswear Company.
In 2015, Stone Island generated €87 million ($97 million) in global sales revenue, a 10 percent increase on 2014. Revenues for 2016 were reported to be at €109 million, 26 percent up on the previous year.
Stone Island is one of the first brands to blur the boundaries between technical wear, streetwear and high-fashion. Its collaborations with Supreme and Nike, as well as stockists like Kith, have helped cement its place at the heart of the streetwear sector.
Editor's Note: This article was revised on 1st August 2017. An earlier version of this article said that Stone Island was founded in 1974. This is incorrect; Stone Island was founded in 1982.