Lvmh: Tod’s will bid farewell to the Milan Stock Exchange thanks to a fund supported by LVMH

(BFM Bourse) – The Italian brand specializing in ankle boots and moccasins will leave the Milan Stock Exchange, after the success of the takeover bid launched by the founding family Della Vega, associated with L Catterton, an investment fund supported by LVMH.

Tod’s will say ciao to the Milan Stock Exchange in the coming days, after the success of the public purchase offer for the Italian brand specializing in ankle boots and moccasins.

The family of founder Filippo Della Valle, acting in concert with L Catterton, managed to exceed 90% of the capital, the key threshold of success for taking a company, in this case Tod’s, off the stock market.

Remember that the L Catterton fund, specializing in the luxury and consumer goods sector, was founded in 2016 by the private equity group Catterton and… LVMH and the Arnault family, who had taken 40% (participations of LVMH and Groupe Arnault) in this fund.

In the outline of the offer announced in February, L Catterton had committed to repurchase 36% of the capital of Tod’s, at a price of 43 euros per share, which constitutes a premium of only around 18% compared to at the closing price prevailing at the launch of the offer. The Della Valle family, for its part, declared that it was contributing 10.5% of the capital to this offer.

A necessary condition for the development of Tod’s

At the end of this offer, the Della Vale family therefore holds 54% of the capital of Tod’s, L Catterton 36% while LVMH’s participation will remain at 10% via its subsidiary Delphine SAS.

“Tod’s shares will be automatically withdrawn from listing and trading on Euronext Milan” after the end of the offer which is valid until May 8, 5:30 p.m., Tod’s said Friday evening.

The tenacity of the Della Valle family to delist Tod’s was therefore rewarded. In August 2022, the founder’s family attempted for the first time to release the transalpine brand specializing in ankle boots and moccasins at a price of 40 euros per title. This attempt then ended in failure, the offer from the Della Valle family failing to obtain more than 90% of the capital.

Nearly two years after this initial offer, the success of this new attempt will logically strengthen the links between the Della Valle family and the LVMH group.

The concert explains that the delisting of the Italian company is a “precondition to ensure the continuation of future growth and consolidation programs” of Tod’s.

This “to the extent that the delisting would allow (Tod’s) to pursue its objectives in a market environment and a legal framework characterized by greater flexibility of management and organization, with deadlines for decision and faster execution and also benefiting from reduced management and listing costs,” they indicated.

Founded in 1900 and present on the Milan coast since 2000, Tod’s achieved sales of approximately 1.13 billion euros in 2023, showing growth of 14% excluding currency effects.

Sabrina Sadgui – ©2024 BFM Bourse

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