Private equity L Catterton has offered to acquire a 36 per cent stake in luxury label Tod’s and delist it, in a deal with Tod’s founding family Della Valle.
Under the agreement, L Catterton will launch a voluntary totalitarian tender offer for consideration of €43 per Tod’s share, which values the company at about US$1.5 billion. The move follows Della Valle family’s attempt to take the company private in 2022 by buying out minority investors.
The company said in the event that it does not meet the delisting threshold, the delisting will be carried out through merger.
Once the deal is completed, Della Valles will retain 45 per cent of Tod’s capital while LVMH’s subsidiary Delphine SAS will retain 10 per cent of the shares.
The leather goods company reported a 23 per cent yearly rise in sales for last year’s first half driven by a strong performance in Greater China.