Havaianas owner buys Rothy’s, valuing sustainable shoe brand at $ 1 billion


Brazilian footwear giant Alpargatas – best known for its Havaianas flip-flop brand – to acquire 49.9% stake in U.S. direct-to-consumer (DTC) company Rothy’s in valuation deal $ 1 billion post-investment.

The acquisition consists of a $ 200 million principal capital investment followed by an acquisition of approximately $ 275 million of Rothy’s shares from current shareholders.

The agreement also provides Alpargatas with a call option to acquire the additional Rothy’s shares from selling shareholders between the first and fourth anniversary of the initial transaction.

Upon completion of the transaction, Rothy’s co-founders Stephen Hawthornthwaite and Roth Martin will retain “a significant equity stake” in Rothy’s and continue to oversee the operations.

Lightspeed Ventures and other existing investors will also continue to have a “significant equity position,” the companies said.

As part of Alpargatas ‘investment, Funari and Stacey Brown, an independent member of Alpargatas’ board of directors, will join Rothy’s board of directors, which will increase to nine directors, including four seats for Alpargatas.

Alpargatas will fuel Rothy’s global growth

Alpargatas markets Havaianas – a Brazilian lifestyle brand and world leader in open footwear and owner of the Havaianas ‘love brand’ – in over 130 countries, and operates directly in over 20. With a vertical supply chain , Alpargatas has six manufacturing units in Brazil and more than 17,000 employees worldwide.

As a result, he is in an ideal position to help Rothy’s grow as it seeks to expand its presence in Asia, Europe and Brazil.

DTC, known for its recycled plastic footwear, will use Alpargatas’ investment to fuel global growth and expand its vertically integrated operations, as well as expand its factory operations and further drive sustainable innovation.

A digitally driven company with 98% of sales coming from online channels, Rothy’s currently has physical stores in San Francisco, Boston, Washington, DC, New York, Los Angeles and Chicago.

Co-founder Hawthornthwaite said in a statement: “This partnership with Alpargatas marks the start of our next chapter of growth and reaffirms the strength of our business model and our momentum in the market. With the financial support, scale and expertise of Alpargatas, we look forward to expanding rapidly into global markets, strengthening our physical presence in retail, advancing product development and accelerating our goal of achieving circular production by 2023. ”

Alpargatas sees the deal as a way to advance operations and strengthen relevance in the North American market, according to company CEO Roberto Funari, who said of the deal: “We appreciate their [Rothy’s] a digitally driven company and loyal customer base, and see this partnership as an important opportunity to advance our global strategy with increased relevance to the North American market. We look forward to working with Stephen, Roth and the entire Rothy’s team to expand the brand community around the world through new retail and e-commerce channels. “

Rothy’s expands its product lines

Founded in 2012, Rothy’s co-founders Hawthornthwaite and Martin set out to create a shoe with distinctive style, comfort and lasting design. With a vertically integrated supply chain, Rothy’s minimizes waste by knitting each product into shape at its 300,000 square foot factory in Dongguan, China. Since launching in 2016, Rothy’s has turned over 100 million single-use plastic water bottles and kept 275,000 pounds of marine plastic out of waterways.

Rothy’s made a number of strategic announcements in 2021 as the company expanded into the men’s category in the spring with the addition of a sneaker and moccasin, which she described as “the top category. most requested to date “. The retailer also announced its goal of achieving circular production by 2023.

Alpargatas owns and operates six factories in Brazil and the partnership positions Rothy’s to accelerate its customer acquisition strategy and increase brand recognition in the US and international markets.

With more than two million customers, Rothy’s products are sold directly online and in all eight Rothy’s retail stores. Based in San Francisco, California, it also has offices in New York and Shanghai, China.

“We founded Rothy’s with the belief that there is a better way to do business, and that starts with putting the planet and its people first. In less than a decade, we have transformed our project of two passion into a successful, sustainable and deeply innovative enterprise – and redefined the footwear category, ”said Hawthornthwaite. “This partnership with Alpargatas marks the start of our next chapter of growth.”


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