Tod’s Strikes Deal to Delist from Milan Stock Exchange, Hand 36% Stake to L Catterton
Luxury goods company Tod’s has announced plans to delist from the Milan stock exchange and offer a 36% stake to private equity firm L Catterton, which is backed by luxury conglomerate LVMH. The deal, worth €512.3 million ($552.4 million), will see L Catterton pay €43.00 per share for the stake, according to Tod’s.
The move comes as the Della Valle family, who currently hold a majority stake in Tod’s, expressed their intention to take the company private in 2022. Upon completion of the deal, the family will retain 54% ownership of the newly privatized company. In addition, LVMH subsidiary Delphine will hold a 10% stake in the company following delisting.
Tod’s, known for its luxury Italian apparel, joined forces with LVMH and Groupe Arnault, the holding company owned by LVMH founder Bernard Arnault, back in 2016. The partnership has allowed Tod’s to benefit from the expertise and resources of one of the world’s leading luxury goods conglomerates.
This latest move is expected to solidify Tod’s position in the luxury market and provide the company with the necessary flexibility to navigate an evolving industry landscape. The agreement with L Catterton and backing from LVMH ensures a strong foundation for Tod’s future growth and success.
Analyst comment
Positive news.
As an analyst, I expect Tod’s market position to strengthen after delisting and securing a partnership with L Catterton and LVMH. The company will have more flexibility and resources to navigate the luxury market, leading to future growth and success.
