Deals
Italian Loafer-Maker’s Buyout Plan Fuels Luxury M&A Speculation
- Tod’s deal a reminder of challenges facing smaller firms: Citi
- Multi-brand conglomerates dominate European luxury sector
A Tod' s store in Seoul.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
A take-private deal for Tod’s SpA spurred chatter of consolidation among smaller luxury firms operating in a market dominated by a handful of heavyweights.
The maker of posh loafers soared as much as 18% in Milan Monday on news that its founding Della Valle family is teaming up with LVMH-backed buyout firm L Catterton on a bid. The development reverberated across the sector, sparking gains in shares of local Italian rivals Salvatore Ferragamo SpA and Brunello Cucinelli SpA, along with the UK’s Burberry Group Plc.