- Italian shoemaker had been operating brand under license
- Della Valle to boost stake in Tod's to 60.66 percent
Italian shoemaker Tod’s SpA acquired the Roger Vivier luxury brand from Tod’s Chief Executive Officer Diego Della Valle and his family, adding a label credited with creating the stiletto heel.
Tod’s will pay about 415 million euros ($441 million) for the French shoe designer plus about 20 million euros for its Paris operations, Tod’s said late Sunday in a statement. The Della Valle family will reinvest 207.5 million euros in Tod’s via a capital increase at 85.83 euros a share.
Tod’s has operated the Roger Vivier label under license for about a decade. Buying control gives the Italian shoemaker a business with a higher average profitability and a brand that is more exclusive than others it owns, including Fay and Hogan.
The shares fell 0.9 percent to 78.40 euros as of 10:03 a.m. in Milan.
“We view the deal as a long-term positive for Tod’s Group for removing the uncertainty associated with the current” license, Rogerio Fujimori, an analyst at RBC Capital Markets, said Monday in a note to clients. Still, “this is not enough to change our cautious view on the stock based on weak” same-store sales growth momentum, the analyst said. Fujimori estimates Roger Vivier will generate sales of more than 150 million euros this year.
After the transaction, which is set to close in January, Diego Della Valle’s stake in Tod’s will rise to 60.66 percent from 57.47 percent.
Diego Della Valle and his brother Andrea acquired Roger Vivier in 2001.