LVMH increases shares in Tod’s to 10%
Luxury fashion giant LVMH has increased its share in Italian luxury leather goods company Tod's by 6.8%, rising to a total of 10%.
Tod’s announced in a statement that LVMH, led by French billionaire Bernard Arnault, would buy the 6.8% stake from Tod’s Founder and Chairman Diego Della Valle.
The business move is described as “reinforcing the twenty-year friendship” between the Arnault (Tod's) and Della Valle (LVMH) families.
The leather goods maker has underperformed in the last 12 months as a direct result of the Coronavirus pandemic. In January 2021, it reported that sales had fallen by almost a third in 2020, continuing a trend of falling annual sales for the fifth year in a row.
Tod's Founder and CEO Diego Della Valle, said: "I am delighted by this transaction which consolidates the friendship between myself, my family, Bernard and his family, that lasts longer than 20 years now. We share the values of luxury, quality and products appeal. This may represent an excellent reason to consider further opportunities to be taken in the future ahead."
LVMH's Chairman and CEO Bernard Arnault added: "The friendship with Diego Della Valle and his family goes back over 20 years, a friendship cemented by common human and professional values. We are happy to reinforce further this partnership."
The price agreed for LVMH’s stake purchase is €33.10 per share, representing a reduced rate of 10% compared to Tod’s share price. The transaction is due to be executed on 28 April 2021.