Fashion News: Roger Vivier Trademark Acquired by Tod’s
Earlier this week it was announced that Tod’s SpA will buy the Roger Vivier trademark for 415 million euros, or $441.7 million at current exchange. The luxury footwear brand is licensed to Tod’s by seller, Gousson Consultadoria e Marketing Srl, an Italian company controlled by Diega Della Valle, chairman and CEO of Tod’s.
During a conference call, Tod’s CFO Emilio Macellari said that the deal was “somehow expected by the market and for sure by the company.” He further commented that the deal held “great strategic value to the group and significantly [strengthened] its brands’ portfolio.”
Macellari noted that Roger Vivier does not imbricate with other labels in the Tod’s group (includes Hogan and Fay) since “it’s positioned in the highest segment of the market.” The acquisition allows for “full control over long-term planning strategies and activities with the aim to improve expected results and capitalize on the growth potential.”
Gousson plans to reinvest 207.5 million euros or $220.8 million in the Tod’s brand through a reserved capital increase. Macellari explains that the increase is aimed at reducing the effects of the purchase on the firm’s financial position. The completion of the transaction was conditional upon a voluntary white-wash procedure – meaning the transaction cannot take place if the majority of the non-controlling shareholders vote against the capital increase reserved to Gousson in a shareholders’ meeting scheduled for Jan. 13. The closing is expected by the close of January. Following the capital increase, Gousson will hold 7.5% of Tod’s share capital.
Rogerio Fujimori from RBC Capital Markets commented that he viewed “the deal as a long-term positive for the group for removing the uncertainty associated with the license giving it full control of a promising asset, with no further royalty payments from January upon deal completion.” He estimated that the acquisition implied a multiple of three times the estimated 2015 sales which he states is “broadly consistent with past deals in the luxury space and a reasonable take-out multiple for an asset with an above-sector average growth profile.”