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Tod’s Looks To Reenergize Brand, Plans To Go Private

Tod’s Looks To Reenergize Brand, Plans To Go Private

Tod’s Looks To Reenergize Brand, Plans To Go Private

The founding family and largest shareholder of Tod’s will be spending $344 million to take the company private with the goal of reenergizing the luxury shoe brand.

The holding company plans to pay $40.68 per share, which will represent a 20.4% premium on the company’s closing price on Tuesday, valuing the company at $1.34 billion.

The decision to privatize the shoe brand comes as Tod’s continues to struggle to find its groove among younger luxury shoppers, Reuters reported.

While Tod’s has improved by 40% since last year, the company’s stock price is still down 32% in the year-to-date. In comparison, Salvatore Ferragamo’s stock value is down just 25%.

The effort marks the second time the brand has sought to revive its business as the pandemic hampered its last attempt.

Della Vale brothers, who currently own a 64.45% stake in Tod’s, believe that taking the company private will offer an opportunity to focus on nurturing the brand without having to worry about short-term performance.

“The objective is to enhance the value of the group’s individual brands, giving them strong individual visibility and operational autonomy,” they said in the statement.

“Through this strategy, we intend to strengthen the positioning of the brands at the top of the quality and luxury market, with a high level of desirability,” the statement added.

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