Alpargatas Raises $492M In Fresh Funding

Brazilian footwear giant, Alpargatas, has raised $492 million in a planned follow-on share offering.

The funding round was led by investment firm Itausa, which is already one of the company’s controlling shareholders. Itausa acquired 30.38 million shares under the terms of the deal.

“The investment reinforces Itausa’s and the other controlling shareholders’ trust in Alpargatas’ strategy and long-term value creation,” Itausa said in a securities filing.

The deal saw Alpargatas selling 37.5 million as well as 57.5 million preferred shares at a rate of $5 per share, which was a 2.3% discount on the company’s Tuesday closing price.

Alpargatas plans to use the fresh funding to pay for its acquisition of California-based apparel and footwear company Rothy’s Inc., according to Reuters. Alpargatas bought a 49.9% stake in the company in December last year.

“This partnership with Alpargatas marks the beginning of our next chapter of growth, and reaffirms the strength of our business model and momentum in the marketplace,” said Stephen Hawthornthwaite, co-founder and CEO of Rothy’s, at the time of the acquisition. “With Alpargatas’ financial support, scale and expertise, we look forward to rapidly expanding in global markets, building our physical retail presence, advancing product development and accelerating our goal to reach circular production by 2023.”

Brazilian Footwear Company Alpargatas Acquires Stake In Rothy’s

Originally published at https://retailbum.com on February 25, 2022.