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Tod's shares soar on $90.5m deal with French group LVMH

LVMH CEO Bernard Arnault and Tod’s founder Diego Dalle Valle are further cementing their 20-year friendship with a deal for the French group to increase its stake in the Italian luxury goods maker

Via AP news wire
Friday 23 April 2021 13:52 BST
Italy Fashion Tod's LVMH
Italy Fashion Tod's LVMH (Copyright 2020 The Associated Press. All rights reserved)

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LVMH CEO Bernard Arnault and Tod’s founder Diego Dalle Valle are further cementing their 20-year friendship with a deal for the French group to increase its stake in the Italian luxury goods maker.

Shares in the Italian luxury footwear and fashion group Tod’s jumped by more than 10%, to 39.02 euros Friday on news of the 75-million-euro ($90.5 million) deal.

That’s well-above the per-share price of 33.10 euros that LVMH, a longtime investor in Tod’s, agreed to pay for 2.25 million shares, representing a 6.8% stake. The deal finalizes on April 28.

Dalla Valle said in a statement that the deal “may represent an excellent reason to consider further opportunities to be taken in the future ahead.” He did not provide details.

The Tod's deal got more expensive after the Italian group added popular social influencer and brand founder Chiara Ferragni to its board earlier this month, boosting shares by 12% as it signaled its intent to target younger buyers.

Beside the Tod’s luxury footwear and fashion brand, the group also owns Hogan, Fay and Roger Vivier.

LVMH brands include Christian Dior, Fenty and Tiffany & Co.

The pandemic has knocked the bottom out of luxury sales, but analysts say it also provides an opportunity for mergers and acquisitions to strengthen those poised to relaunch as economies rebound.

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