Moncler has had a dream run selling its exorbitant winter jackets and ski gear—so much so that it has attracted the attention of luxury behemoth LVMH.

The French conglomerate just bought a 10% stake in Double R, the investment vehicle owned by Moncler CEO Remo Ruffini, which is on track to become Moncler’s largest shareholder.

Double R currently holds a 15.8% stake in Moncler, which it plans to increase to 18.5% in the next 18 months with help from LVMH’s funding. LVMH has the option to increase its stake in Double R up to 22%, which would increase its indirect stake in Moncler to over 4%.

The move marks LVMH founder Bernard Arnault’s latest deal as he tries to expand his luxury stronghold. Some of its recent acquisitions include jeweler Tiffany & Co. and eyewear company Barton Perreira, which add to LVMH’s ever-growing list of maisons.

Investing in Moncler is significant, as the Italian company has been one of the few to defy a slump that’s dragged luxury majors down. In 2023, Moncler reported a 17% jump in sales to nearly €3 billion, beating analyst estimates. Those figures have increased about four-fold over the last decade.

Ironically, the surge in revenue was driven by Asia, which has been a pain point for other luxury companies as they’ve come to rely on the region heavily and have suffered from its lackluster recovery.

LVMH might be an industry juggernaut, but it has fallen prey to the downturn roiling its competitors. However, its stake in Moncler could hedge it in future downturns, seeing as the brand outperformed the luxury market.

“Moncler has been one of the most significant entrepreneurial success stories in the industry over the past twenty years,” LVMH CEO Arnault said in a statement, according to Bloomberg. He added that he plans to “support the independence of the Moncler Group.”

A big deal for luxury fashion

In his time building up the luxury industry’s biggest name, Arnault has earned a reputation for being a shrewd dealmaker. He has had a mix of successes and failures, but it has all cemented LVMH’s leading position—at least for now.

As part of the deal, LVMH will have the right to appoint two board members at Double R and one at Moncler. PARIS, FRANCE - SEPTEMBER 30: Remo Ruffini attends the #BoF500 Gala during Paris Fashion Week at Shangri-La Hotel Paris on September 30, 2023 in Paris, France. (Photo by Vittorio Zunino Celotto/Getty Images for The Business of Fashion)

Bernstein analysts predict Double R will attempt to boost its stake in Moncler further as LVMH looks to get involved in the company. Ruffini also welcomes the investment—he said it “provides the stability needed to execute my vision for the future.”

Ruffini acquired the Moncler brand just over 20 years ago, giving it a new lease of life. The brand started as an alpine fashion company over seven decades. For the years that followed, Moncler grew mostly within the world of mountainous sport, thanks to the sound technical engineering of its jackets—but it was never seen as a luxury good.



But Ruffini helped transform the company and scale it to new heights. Today, Moncler’s down jackets retail for thousands of euros and are seen as somewhat of a TikTok sensation.

Moncler’s shares were up 10% as of 11.30 a.m. London time.

Representatives at Moncler didn’t immediately return Fortune’s request for further details on the deal.

This story was originally featured on Fortune.com