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Tod’s founders considering 344 million dollar bid to take group private

By Rachel Douglass

4 Aug 2022

Business

Image: Tod's x Mame Kurogouchi

The founders of Italian luxury shoemaker Tod’s have expressed an interest in buying out other investors of the company in order to take the group private.

According to multiple reports, the Della Valle brothers, who founded Tod’s back in 1978, are willing to cash out 344 million dollars on the move, which would see it delisted from the Italian Stock Exchange.

The sibling duo are hoping that the decision will boost the financial side of the business as they look to manage its selection of brands separately.

In a statement, the brothers said that their holding company, which currently owns 64.5 percent of Tod’s, would offer to buy its shares at 40 euros each, valuing the company at 1.32 billion euros.

“The objective is to enhance the value of the group’s individual brands, giving them strong individual visibility and operational autonomy,” the Della Vellas noted.

Luxury conglomerate LVMH will retain 10 percent of its stake, which it had raised last year to reinforce the relationship between the two companies and their founders.

Plans to focus on portfolio brands individually

In its report, Reuters cited that a source close to the bid had stated the buyout would allow Della Valles to establish different strategies for each of the brands under the group, which also counts Fay and Hogan, among others, under its portfolio.

It will further enable the brothers to decide which brands to invest in as they possibly attempt to relaunch the company that has recently become stagnant in the market, despite its revenues tripling since it was initially introduced onto the stock exchange in 2000.

An additional source of the publication said that the bid is not a prelude to a LVMH sale, however the French group could be the first to be considered if a future sale was on the cards.

TOD's