Who Owns TOD'S Company?

Who Owns Tod's?

Tod's S.p.A., an Italian luxury fashion group, recently delisted from the Milan Stock Exchange. This move highlights the importance of understanding a company's ownership structure.

The Della Valle family, founders of the company, and L Catterton, a private equity firm backed by LVMH, were instrumental in this privatization. This shift impacts Tod's strategic direction and operational flexibility.

The founding family's enduring stake, alongside significant investor influence and recent privatization, has redefined Tod's ownership structure and governance. Understanding this evolution is key to grasping the company's trajectory, including its iconic products like those analyzed in the TOD'S BCG Matrix.

The origins of Tod's ownership trace back to a humble artisanal workshop established in the early 1900s by Filippo Della Valle, a skilled cobbler. His son, Dorino Della Valle, expanded this into a small company focused on women's footwear, laying the groundwork for what would become a global luxury brand.

Artisanal Beginnings

Filippo Della Valle, a cobbler, founded an artisanal workshop in Italy's Marche region. His son, Dorino Della Valle, later transformed it into a small company producing women's footwear.

Leadership Transition

The company's significant commercialization and expansion began in the 1970s under Diego Della Valle. He officially joined the family business in 1975 and took over in 1978.

Brand Evolution

Diego Della Valle renamed the company J.P. Tod's and expanded the workshop into a factory. By the 1980s and 1990s, the brand achieved mainstream distribution across Europe and the U.S.

Marketing and Naming

The name 'J.P. Tod's' was reportedly chosen to appeal to high-end consumers in New York. The 'J.P.' was later dropped in 1999.

Family Control

Throughout this growth, the Della Valle family maintained significant control. Diego and his brother Andrea Della Valle held the majority of the company's ownership.

Commitment to Craftsmanship

The family's dedication to 'Made in Italy' quality is evident in their decision to keep all manufacturing facilities in Italy.

The Della Valle family's deep-rooted involvement, from the initial artisanal workshop to the establishment of a modern manufacturing entity, has been central to the company's identity and its enduring commitment to 'Made in Italy' craftsmanship. This family control ensured that the brand's vision for quality and heritage remained paramount throughout its expansion. Understanding the Growth Strategy of TOD'S highlights how this foundational ownership structure influenced its global trajectory.

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Tod's S.p.A.'s ownership journey began with its Borsa Italiana listing in 2000, transitioning from private financing. The Della Valle family has consistently held the majority control throughout this evolution, maintaining their significant influence over the company's strategic direction.

The Della Valle family, led by Diego Della Valle and Andrea Della Valle, has been the bedrock of Tod's Group ownership since its inception. As of February 2024, their stake stood at 54% of the company's capital and voting rights, underscoring their enduring control. LVMH, a significant long-term investor, bolstered its position in 2021 by increasing its stake to 10% through its subsidiary Delphine SAS, a move that solidified the relationship between the two prominent families. A pivotal development occurred in 2024 when L Catterton, a private equity firm associated with LVMH, launched a tender offer to acquire a 36% stake, valuing the transaction at approximately €512 million. This strategic move, which saw the Della Valle brothers divest 11,913,128 shares, aimed to grant Tod's greater operational flexibility and reduce listing expenses. Consequently, Tod's Group was officially delisted from the Milan Stock Exchange on June 7, 2024. Following this transition, the ownership structure is now comprised of the Della Valle family retaining 54%, L Catterton holding 36%, and LVMH's Delphine SAS with 10%, signaling a shift towards private ownership to facilitate growth and brand consolidation across its portfolio, including brands like Hogan, Fay, and Roger Vivier. Understanding these shifts is crucial for grasping the Revenue Streams & Business Model of TOD'S.

Key Ownership Milestones

The ownership of Tod's Group has seen significant transformations, moving from private financing to public listing and, most recently, to a private equity-backed delisting.

• Tod's S.p.A. listed on Borsa Italiana in 2000.
• Della Valle family maintained majority control throughout its history.
• LVMH increased its stake to 10% in 2021.
• L Catterton launched a tender offer in 2024 for a 36% stake.
• Tod's Group delisted from the Milan Stock Exchange on June 7, 2024.

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The Board of Directors at Tod's S.p.A. is structured to reflect its ownership and operational management, with key committees supporting its functions. The Della Valle family, as the primary stakeholder, plays a significant role in the board's composition and strategic direction.

The voting power within Tod's S.p.A. is heavily concentrated, primarily with the Della Valle family. This concentration ensures their continued strategic leadership and decision-making authority, even with external partnerships. The company's governance framework, including its Board of Directors and committees, is designed to facilitate efficient operations while maintaining the family's influence.

Tod's Ownership and Voting Power

The Della Valle family maintains a dominant position in Tod's Group, significantly influencing its strategic direction and operational decisions. Their substantial shareholding translates into considerable voting power.

• The Della Valle family holds 54% of the share capital.
• Di.Vi. Finanziaria di Diego Della Valle & C. S.r.l., the family's holding company, owned 50.291% of the share capital as of March 2023.
• This stake represented 69.09% of the voting rights, highlighting their outsized control.
• The family's continued influence is evident in their proposal of board candidates.
• Understanding the Brief History of TOD'S provides context for this ownership structure.

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Recent strategic moves have significantly reshaped Tod's ownership profile, focusing on a transition to private status. These developments aim to enhance operational flexibility and reduce public market costs.

The ownership structure of Tod's Group has seen a significant shift towards private control, culminating in its delisting from the Milan Stock Exchange. This strategic maneuver was spearheaded by an agreement with L Catterton, a private equity firm backed by LVMH, to acquire a substantial stake. This move followed a previous, unsuccessful attempt by the Della Valle family to take the company private. The successful tender offer, which concluded in May 2024, resulted in Crown Bidco Srl, an L Catterton affiliate, acquiring more than 90% of the shares. Despite this transition, the Della Valle family continues to hold a majority stake of 54% and retains majority voting rights, underscoring a commitment to continued family influence. LVMH also maintains its 10% stake, a position reinforced in 2021. The overall valuation of Tod's in this transaction is approximately €1.4 billion. This change in ownership structure is intended to provide greater strategic flexibility for the development of individual brands within the group, including Tod's, Roger Vivier, Hogan, and Fay, with a long-term growth perspective. Financially, Tod's Group reported revenues of €1.13 billion for fiscal year 2023, an increase of 11.9% year-over-year, though the first quarter of 2024 saw a 4.7% dip in sales to €258 million, partly due to market conditions in Greater China. The leadership has also seen a change, with John Galantic taking over as CEO in September 2024, while Diego Della Valle continues as Chairman, emphasizing the enduring family commitment to the business.

Majority Stakeholder

The Della Valle family remains the majority shareholder of Tod's Group, holding a 54% stake. This ensures continued family control and strategic direction for the company.

Key Investor

L Catterton, a private equity firm, is a significant investor, having acquired a substantial stake as part of the delisting process. LVMH also holds a 10% stake, reflecting a long-standing relationship.

Delisting Rationale

The decision to delist from the Milan Stock Exchange was driven by a desire for greater management flexibility and a reduction in listing-related costs. This allows for a more focused approach to brand development.

Strategic Outlook

The new ownership structure is designed to unlock the full potential of each brand within the Tod's Group. This strategy is focused on long-term growth and brand consolidation, as detailed in the Competitors Landscape of TOD'S.

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