Diego Della Valle cements French connection with planned Tod’s delisting

Early last year Diego Della Valle, one of the giants of Italian business, had an important topic to discuss with his family at his 17th century estate: their vision for the future of Tod’s, the luxury shoe and bagmaker founded by his grandfather more than a century ago.

After an attempt to take the group private had failed, he and his younger brother Andrea wanted to talk to their children at the villa in Italy’s hilly Marche region about their commitment to managing the business famous for its leather bags and suede loafers.

Over several Sunday lunches they were reassured by the responses of Diego’s eldest son Filippo, 26, who works in Tod’s marketing department, and Andrea’s son Leonardo, 24, who works at Schiaparelli, one of its other brands. Eventually they also decided they needed a partner to help revitalise the group’s performance, according to an insider.

That partner has now arrived in the form of LVMH-backed private equity firm L Catterton and a deal that will bring down the curtain on Tod’s more than two decades as a public company on the Milan stock exchange.

Under the proposal, announced last weekend, the Della Valle family will retain their majority but reduce their stake from 64 to 54 per cent, while L Catterton will take a 36 per cent stake in Tod’s and LVMH will retain its 10 per cent holding. The deal values Tod’s at about €2bn including debt.

At its heart is Diego Della Valle, one of the most flamboyant and outspoken personalities in Italian business and chief executive and chair of the family business since 2000.

Formerly an investor in NTV, Italy’s private railway operator, other past investments span the sports, banking, media and design industries.

Known for his staple silk cravats and forthright manner, he is proud of being Italian and has not held back from openly criticising other Italian family-owned businesses for moving their headquarters abroad and cutting local jobs. Tod’s headquarters remain in the small…