Milan’s out of fashion with Tod: Luxury shoe and bag maker to quit the Italian stock exchange

Fashion deal: Luxury shoe and bag maker Tod is to sell a 36% stake to the L Catterton partnership

Luxury shoe and bag maker Tod’s will quit the Milan stock exchange after agreeing a deal with a buyout firm backed by LVMH.

The Italian fashion group has revealed it will sell a 36 per cent stake to L Catterton, which is a partnership between a private equity company, French luxury group LVMH and founder Bernard Arnault’s family investment vehicle.

L Catterton will pay €43 per share for this holding, valuing it at around £437million. This is an 18 per cent premium on the closing value of Tod’s shares on Friday. 

The agreement means that Tod’s can delist from the Italian stock exchange after 24 years – something that its founding family have been plotting since 2022.

L Catteron said taking the company private will allow for faster decision-making and give it greater flexibility to pursue growth.

Tod’s, best known for its Gommino loafers, was set up by the Della Valle family in Italy in 1920. 

Under the deal, they will retain ownership of 54 per cent of Tod’s. Shares soared more than 18 per cent in Milan yesterday.