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 an offer valuing the Italian luxury brand at around 1.4 billion euros ($1.5 billion ).
L Catterton, backed by French fashion group LVMH, will offer to buy shares from some investors for 43 euros each, it said in a statement on Sunday. The price represents an 18% premium to Friday’s closing price.
Tod’s, known for its leather driving moccasins, has sought to stay relevant in a rapidly transforming luxury sector where bigger players are gaining market share. Suitors have said that privatizing the company will enable quicker decision-making and give it more flexibility to pursue growth.
The Della Valle brothers, who currently hold the majority of Tod’s, aim to retain a 54% stake after selling a stake to L Catterton, the statement said on Sunday. L Catterton plans to spend around €512 million to get a 36% stake, while existing investor LVMH would keep 10% after the deal.
On Monday morning in Milan, Tod’s shares increased by 18% to 42.84 euros. The stock has lost about two-thirds of its value since its 2013 peak.
In addition to its namesake brand, Tod’s also owns Roger Vivier, a maker of dress pumps, and the casual shoe brand Hogan. The offer marks a new attempt by the family to delist Tod’s after a previous offer in 2022 failed to gain enough support from shareholders.
The president of Tod’s, Diego Della Valle, stated that exiting the stock market “constitutes the most appropriate strategic choice” and “would bring further benefits to the future development of the Tod’s Group, built through continuous investments and challenging objectives”.
The deal would deepen Diego Della Valle’s ties to 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.