Alpargatas S.A. completed the acquisition of an unknown minority stake in Rothy's, Inc.
May 30, 2022
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Alpargatas S.A. (BOVESPA:ALPA4) agreed to acquire an unknown minority stake in Rothy's, Inc. for approximately $280 million on December 20, 2021. Under the terms of the agreement, Alpargatas will acquire 49.9% of Rothy's in a two-step transaction. This will include an investment of $200 million in primary capital followed by an offering to acquire approximately $275 million of Rothy's shares from current stockholders, resulting in a post-investment valuation of $1 billion. Alpargatas will raise approximately $480 million through follow-on offering, use of the proceeds will be used for financing the transaction. Rothy's co-founders Stephen Hawthornthwaite and Roth Martin will maintain a significant equity stake in the business and continue to oversee operations. The agreement provides Alpargatas with a call option to acquire the additional Rothy's shares from selling stockholders between the first anniversary and fourth anniversary of the initial transaction. In connection with Alpargatas' investment, Funari and Stacey Brown, an independent member of Alpargatas' Board of Directors, will join the Rothy's board, which will expand to nine directors, including four seats for Alpargatas. Goldman Sachs & Co. LLC served as financial advisor and Cooley LLP served as legal counsel to Rothy's. Lazard served as financial advisor and Mayer Brown served as legal counsel to Alpargatas.
Alpargatas S.A. (BOVESPA:ALPA4) completed the acquisition of an unknown minority stake in Rothy's, Inc. in May 2022.
Alpargatas SA, formerly Sao Paulo Alpargatas SA, is a Brazil-based company engaged in the production of footwear, apparel and sporting goods. The Company manufactures and sells footwear and its components, clothing as well as textile products. The Company's brand names portfolio includes Havaianas, manufacturing flip-flops in numerous designs and colors; Osklen, a fashion brand offering male and female clothing, shoes and accessories, such as bags and sunglasses, and Dupe, sandals manufacturer that uses HXP Gel technology which provides more comfort and softness to the consumersâ feet. The Company is present throughout the world, including Colombia, Hong Kong, London, Lisbon and Sao Paulo.
ALPARGATAS S.A. 
