Home News Founding family and private equity firm offer to acquire privately held luxury shoemaker Tod's

Founding family and private equity firm offer to acquire privately held luxury shoemaker Tod's

by SuperiorInvest

KEY TAKEAWAYS

  • Luxury shoe maker Tod's said its founding family is teaming up with LVMH-backed private equity firm L Catterton to take it private.
  • L Catterton will acquire 36% of Tod's shares if the transaction receives shareholder approval.
  • Tod's founding family, the Della Valle family, will retain control with 54% ownership if the deal is approved.

The founding family of Tod's and private equity firm L Catterton are joining forces and have offered to take the luxury loafer maker private and delist it from the Milan stock exchange.

L Catterton will pay 43 euros per share ($46.30) for a 36% stake in Tod's, translating into a premium of almost 18% over Tod's' closing share price on Friday, the shoemaker said. in a statement on Saturday. L Catterton is backed by French luxury conglomerate Moët Hennessy Louis Vuitton SE (OTC: LVMUY), commonly known as LVMH.

The Della Valle family, which founded and built the company, will retain 54% of the shoemaker's shares after the delisting and will control the company.

LVMH currently owns 10% of Tod's shares and would continue to own the same amount after the proposed delisting, which values ​​the company at €1.32 billion ($1.42 billion). The founding family reportedly said in a statement that delisting the company would help Tod's grow outside the constraints of a public listing.

This is not the Della Valle family's first attempt to take Tod's private. A previous offer of 40 euros per share was unsuccessful as it did not obtain sufficient shareholder approval. Tod's went public in 2000.

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