Fashion agreement: luxury shoe and bag manufacturer Tod will sell a 36% stake to the company L Catterton
Luxury shoe and handbag maker Tod’s will leave the Milan Stock Exchange after reaching an agreement with an LVMH-backed buyout company.
The Italian fashion group has revealed it will sell a 36 per cent stake to L Catterton, which is a partnership between a private equity firm, French luxury group LVMH and founder Bernard Arnault’s family investment vehicle.
L Catterton will pay €43 per share for this stake, valuing it at around £437m. This is an 18 percent premium to the closing value of Tod’s shares on Friday.
The deal means that Tod’s will be able to delist from the Italian stock market after 24 years, something its founding family has been plotting since 2022.
L Catteron said taking the company private will allow for faster decision-making and give it greater flexibility to pursue growth.
Tod’s, best known for its Gommino loafers, was founded by the Della Valle family in Italy in 1920.
Under the agreement, they will retain ownership of 54 percent of Tod’s. Shares soared more than 18 percent in Milan yesterday.