Tod’s set to leave Milan bourse as L Catterton offer succeeds

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On Friday, L Catterton, a private equity firm supported by the world-famous French luxury conglomerate LVMH, and the Italian group’s principal shareholder, the Della Valle family, announced that they had acquired sufficient shares in the luxury shoe manufacturer Tod’s to move forward with their privatization plans.

L Catterton announced that it had acquired 8,656,066 shares, which is more than the 90% needed to delist the group, after its offer for the Italian company. With this purchase plus the holdings owned by LVMH and the Della Valle family, Tod may finally leave the Milan exchange after 24 years of public trade.

Aside from the world-famous Tod’s brand, which is famous for its highly sought-after Gommino loafers, the high-end shoemaker also proudly owns prestigious names like Roger Vivier, Fay, and Hogan.

The new owners will be able to implement strategic efforts to revitalize Tod’s brands without being constantly monitored by stock market investors thanks to privatization.

With a share price of 43 euros, L Catterton proposed in February to acquire 36% of the premium shoemaker, putting Tod’s worth slightly over 1.4 billion euros. They are recommitting themselves to leading the company to new heights of success, as this agreement, reached in conjunction with the founding Della Valle family, shows.

Along with his brother Andrea, Diego Della Valle—CEO and creator of Tod’s—will keep 54% of the company and is expected to tender a 10.45% interest. At the same time, L Catterton will own the remaining shares, while LVMH will keep its 10% position.

It should be mentioned that in 2022, the Della Valle family tried to privatize the group before, but they couldn’t get enough people to back the plan.

With the support and wisdom of its stakeholders, Tod’s is starting a new chapter as a privately held corporation. This new chapter will be a transformative journey, with the goal of making its esteemed brands shine in the ever-changing world of luxury fashion.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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