The L Catterton investment fund, with which the world number one luxury company LVMH and its boss Bernard Arnault are associated, is coming to the aid of brothers Diego and Andrea Della Valle. The shareholders of the Tod’s group, which owns the brand of leather shoes known for their spiked soles, Hogan derbies and Roger Vivier pumps, announced on Sunday February 11 that they supported the public takeover bid launched by the Franco-American fund.
The operation carried out on the 36% of the capital listed on the Milan Stock Exchange, values the company at 1.4 billion euros. A figure slightly higher than its turnover (1.12 billion euros in 2023, growth of 11.9%), half of which comes from Tod’s shoes, made in Italy in the Brancadoro factory located in Marche. . The amount of the investment will amount to 512 million euros for L Catterton and LVMH will remain in the capital (it currently holds 10%). The two Della Valle brothers announced that they would reduce their stake to 54%.
In 2022, the Della Valle tried, in vain, to take their company, then in decline, off the stock market. It was faced with competition from high-end sports shoes, the aging of its wealthy clientele and very sluggish diversification in the ready-to-wear sector. The sale of brands considered secondary was on the table to concentrate the financial resources of the Italian firm on the Tod’s brand alone.
Very happy
This time, Diego Della Valle, the CEO, found the right partner to bring his delisting project to fruition. With 34 billion dollars in assets (31.5 billion euros), L Catterton notably entered the capital of the French brand APC in 2023. Two years earlier, he had taken control of the German shoes Birkenstock before introduce them to Wall Street.
By press release, Mr. Della Valle, whose personal fortune is estimated at $1.2 billion by the magazine Forbesdeclared “very happy with this transaction which will promote the future development of Tod’s”. The businessman, who sits on the board of directors of the LVMH group, is also strengthening his ties with the world number one luxury brand.
Already in an interview with the British financial daily Financial Timesin 2021, Mr. Della Valle, now 70 years old, said he was preparing his succession and was ready to sell part of his stock portfolio to “his friend Bernard Arnault”, or even 100% of his company.
You have 15% of this article left to read. The rest is reserved for subscribers.