French luxury heavyweight LVMH is investing in Moncler in a transaction that gives LVMH a seat on the board of the Italian fashion company, best known for its pricey puffer jackets.

The French luxury conglomerate has acquired a 10 per cent stake in Ruffini’s investment vehicle, Double R, which owns a direct stake in the luxury outerwear brand.

LVMH has purchased a 10 percent stake in Double R, the investment vehicle controlled by Ruffini Partecipazioni Holding that owns a direct stake in Moncler.

LVMH has a seat on the board of Moncler, an outdoor brand largely known for its ski jackets. The French fashion conglomerate acquired a 10% stake in the investment vehicle Double R, which is a partial owner of Moncler.

MILAN/PARIS (Reuters) -Moncler's Chairman and CEO Remo Ruffini is tightening his control of the outerwear specialist after striking a deal with LVMH, which will partner with Ruffini to fund an expanded investment in the Italian company.

Shares in Moncler rose sharply on Friday after French rival LVMH invested in the Italian outerwear specialist, fuelling speculation about the long-term intentions of the owner of Louis Vuitton and Moet & Chandon champagne.

After the surprise announcement late Thursday that LVMH has acquired a 10% stake in Remo Ruffini's holding company that controls 15.8% of Moncler, the Italian luxury outerwear label's shares soared 11.