Home Private Equity Tod’s potential delisting deal: Why it matters

Tod’s potential delisting deal: Why it matters

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What happened

Tod’s founder, chairman and CEO Diego Della Valle, his brother Andrea Della Valle and the LVMH-backed private equity firm L Catterton have entered an agreement involving the launch of a tender offer at €43 per Tod’s share, aimed at obtaining the delisting of the company from the Italian stock exchange, the parties said in a press release shared on Sunday.

In the event of full acceptance of the offer, the Della Valle family will retain ownership of 54 per cent of the Tods’s capital; L Catterton will indirectly own 36 per cent; and the minority shareholder Delphine SAS (a fully owned subsidiary of LVMH) will retain 10 per cent of the capital. (In 2021, LVMH increased its stake in Tod’s to 10 per cent, up from 3.2 per cent.)

”I am very pleased to announce this transaction, which will provide further benefits to the future development of Tod’s Group, built through continuous investments and challenging goals,” Diego Della Valle said in a statement. “We determine that leaving the stock exchange now — with which we have always had an excellent relationship — is the most appropriate strategic choice. Sharing this path with L Catterton — the leading global consumer investment firm — which highly appreciates our brands and their desirability will give us the chance to further develop our group and to seize the opportunities that the market will offer.”

“Tod’s Group is synonymous with luxury, quality and craftsmanship, embodying the Italian ethos that the Della Valle family captured so perfectly over 100 years ago,” Michael Chu, global co-CEO and co-founder of L Catterton, said. “It is an honour to partner with the Della Valle family in this important next stage of the company’s remarkable journey.”

Tods potential delisting deal Why it matters

Photo: Armando Grillo / Gorunway.com

Why it matters

Delisting allows a company to implement a growth strategy without being under scrutiny of the market. Tod’s Group, which includes the Hogan, Roger Vivier and Fay brands, went public in 2000 after the namesake brand’s launch in 1983. In 2022, Tod’s abandoned its planned buyout (at €40 per share) after it failed to meet the required threshold of support from investors. This time, the acquisition of a stake by L Catterton will go through as it is not conditioned to the delisting, so L Catterton will acquire its shares. (L Catterton had recognised potential in casual footwear in the past, as shown by the acquisition of Birkenstock). However, taking the company private requires market support (at €43 per share) as no one is obliged to sell its share.

Tod’s Group sales reached €1.12 billion in 2023, up 11.9 per cent year-on-year, but has yet to reach a critical size in an industry that gives an edge to luxury conglomerates. L Catterton is backed by LVMH. Diego Della Valle shared his long-term strategy in 2021, signalling his openness to sell a larger stake to LVMH if he decided to sell: “If one day I decide [to sell], I believe in people like Bernard [Arnault], but nothing is in the view,” Della Valle told the Financial Times.

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