Tod’s owner gets help from L Catterton to take the company private

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Written By Pinang Driod

© Reuters. FILE PHOTO: Models present creations from the Tod’s Fall/Winter 2023/2024 collection during Fashion Week in Milan, Italy, February 24, 2023. REUTERS/Alessandro Garofalo/File Photo

MILAN (Reuters) -The founding family of Italian luxury shoemaker Tod’s is trying to take the company private for the second time in less then two years, this time with the help of L Catterton, a private equity firm backed by France’s LVMH.

L Catterton said it would launch a tender offer to buy 36% of the Italian luxury group to take it private, in agreement with the majority shareholder Della Valle family.

The private equity firm said in a statement late on Saturday it would offer to buy Tod’s shares at 43 euros ($46.36) each, a 17.6% premium to Friday’s closing price, spending up to 512 million euros. The offer values the company at just over 1.4 billion euros ($1.5 billion).

“We determine that, leaving the stock exchange now… is the most appropriate strategic choice,” Tod’s Chief Executive Diego Della Valle said in a statement.

Under the deal, Tod’s CEO and founder Diego Della Valle will tender his 10.45% stake in the company to L Catterton, while retaining 54% of the company together with his brother Andrea.

French luxury giant LVMH will also keep its 10% in the Italian group and L Catterton will own the remainder of Tod’s if the tender offer is successful.

In 2022, Tod’s founding family tried to take the Milan-listed group private in an effort to revive its fortunes by managing its diverse brands separately, but it failed to reach the 90% ownership threshold needed and dropped the takeover attempt. Back then shareholders were offered 40 euros per share.

L Catterton said on Saturday that if the offer does not reach the threshold needed to delist the company, it will take Tod’s private by merging the group into the vehicle used to launch the offer.

In addition to the eponymous brand, famous for its Gommino loafers, Tod’s also owns the Fay and Hogan labels, as well as Roger Vivier.

($1 = 0.9275 euros)


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