Tod's to be delisted after successful takeover bid by fund associated with LVMH

Milan - The friendly takeover bid for Tod's launched by L Catterton, an investment fund associated with LVMH, has exceeded the threshold of 90 percent of the capital, which will allow the Italian luxury shoe maker to be delisted from the Milan Stock Exchange, according to results published on Friday.

"Tod's shares will be automatically withdrawn from listing and trading on Euronext Milan" after the end of the offer, which runs until 8 May, the Italian group said in a statement.

In agreement with the Della Valle family, Tod's main shareholders, L Catterton offered to acquire 36 percent of the capital at a price of 43 euros per share, i.e. a maximum amount of 512.2 million euros.

This price included a premium of 17.6 percent on the closing share price on 9 February.

The CEO of the Italian group, Diego Della Valle, undertook to tender 3,459,401 shares to the offer, representing 10.45 percent of the share capital.

Following the takeover bid, the Della Valle family will hold 54 percent of the capital, L Catterton will control 36 percent and the world's number one luxury goods group LVMH will retain its current 10 percent stake, Tod's said in February.

According to Mr Della Valle, this transaction should "favour the future development of the Tod's group, a development based on continuous investment and ambitious objectives".

In his opinion, the delisting from the Milan Stock Exchange, where the group had been present since November 2000, was "the most appropriate choice from a strategic point of view".

A first attempt to delist Tod's failed in October 2022 when a takeover bid launched by the Della Valle family failed to reach the necessary 90 percent threshold.

Owned by the Della Valle family since it was founded in 1978, the Tod's group, known for its pimpled loafers, saw its sales rise by 11.9 percent to 1.12 billion euros in 2023.

As well as Tod's, the group also owns the more sporty Hogan brand and the French Roger Vivier label, for which former French model Inès de La Fressange is the ambassador.

L Catterton is the result of a partnership between the Catterton investment fund and LVMH, as well as Bernard Arnault's family holding company, Agache, formerly known as Groupe Arnault.

The investment fund made a name for itself in 2021 by acquiring the famous German sandals Birkenstock and the high-end French ready-to-wear brand A.P.C in 2023. (AFP)

This article originally appeared on FashionUnited.FR. Translation and edit by: Rachel Douglass.