(Bloomberg) -- LVMH is investing in designer outdoor label Moncler SpA in a deal that will give the French luxury company a seat on the Italian company’s board.

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LVMH Moët Hennessy Louis Vuitton SE is buying a 10% stake in Double R, the investment vehicle controlled by Moncler Chairman and Chief Executive Officer Remo Ruffini, which itself owns a 15.8% stake in Moncler, the companies said in a statement Thursday. Financial terms of the deal weren’t disclosed.

Moncler has become a popular brand, selling down jackets that can cost €5,500 ($6,147). Earlier this year, the label organized a glitzy fashion show in the Swiss mountain town of St. Moritz with celebrity attendees including Kate Moss and Anne Hathaway.

“Moncler has been one of the most significant entrepreneurial success stories in the industry over the past twenty years,” LVMH controlling shareholder and CEO Bernard Arnault said in the statement, adding that he will “support the independence of the Moncler Group.”

Under the terms of the agreement, LVMH will increase its investment in Double R to as much as 22%, allowing the investment vehicle to increase its stake in Moncler to as much as 18.5% over the next 18 months.

Ruffini will continue to drive the company’s future development plans, according to the statement. Moncler also owns the label Stone Island, which it bought about four years ago.

LVMH intends to back Ruffini’s vision as a “stable long-term minority” shareholder of Double R, it said. The transaction will enable LVMH to have one board seat at Moncler and two at Double R.

LVMH has made various investments in Italian labels over the years. About a decade ago, it acquired cashmere specialist Loro Piana. LVMH also owns a 10% stake in Tod’s SpA, which went private earlier this year with L Catterton, the Arnault-backed private equity fund.

Moncler held exploratory talks for a deal with Gucci owner Kering SA about five years ago.

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