Active Stocks
Fri Apr 19 2024 15:56:00
  1. Tata Steel share price
  2. 162.10 1.31%
  1. Tata Motors share price
  2. 963.20 -0.84%
  1. NTPC share price
  2. 350.90 -0.14%
  1. ITC share price
  2. 424.80 1.40%
  1. Power Grid Corporation Of India share price
  2. 281.70 0.54%
Business News/ News / Tod’s Founding Family Partners With L Catterton for Buyout Bid
BackBack

Tod’s Founding Family Partners With L Catterton for Buyout Bid

The founding family of Tod’s SpA is teaming up with buyout firm L Catterton in a new attempt to take the company private, with a bid that values the Italian luxury brand at about €1.4 billion ($1.5 billion).

Tod’s Founding Family Partners With L Catterton for Buyout BidPremium
Tod’s Founding Family Partners With L Catterton for Buyout Bid

(Bloomberg) -- The founding family of Tod’s SpA is teaming up with buyout firm L Catterton in a new attempt to take the company private, with a bid that values the Italian luxury brand at about €1.4 billion ($1.5 billion). 

L Catterton, which is backed by French fashion group LVMH, will offer to purchase shares from some investors for €43 apiece, it said in a statement Sunday. The price represents an 18% premium to the last closing price in Milan. 

Tod’s, known for its leather driving loafers, has been seeking to remain relevant amid a rapidly transforming luxury industry where bigger players are gaining market share. The suitors said taking the company private will allow faster decision making and give it greater flexibility to pursue growth. 

The Della Valle brothers, who currently own a majority of Tod’s, aim to keep a 54% holding after selling a portion to L Catterton, according to Sunday’s statement. L Catterton plans to spend about €512 million to gain a 36% stake, while existing investor LVMH would retain 10% after the deal. 

Beyond its namesake brand, Tod’s also owns Roger Vivier — a maker of elegant pumps — and casual shoe label Hogan. The bid marks a fresh attempt by the family to delist Tod’s after a previous offer in 2022 failed to get enough shareholder support.

Tod’s Chairman Diego Della Valle said leaving the stock exchange “is the most appropriate strategic choice" and would “provide further benefits to the future development of Tod’s Group, built through continuous investments and challenging goals."

The deal would deepen Diego Della Valle’s ties with LVMH, where he is a board member. The conglomerate already controls Italian luxury brands such as Bulgari, Fendi and Loro Piana. 

JPMorgan Chase & Co. is advising L Catterton on the deal, while the majority shareholders are working with Bank of America Corp. 

--With assistance from Chiara Albanese, Andrew Davis and Angelina Rascouet.

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 12 Feb 2024, 12:17 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App