Scoop: Brazil's footwear behemoth Alpargatas gets a piece of DTC sensation Rothy's
- In a joint press release on Monday, Alpargatas, renowned for its Havaianas flip-flops, announced it'll invest $200 million in Rothy's, the digitally-native shoe company famous for recycled plastics, owning a whopping 49.9% stake. This move will be followed by acquiring approximately $275 million of Rothy's shares from existing shareholders, with an option for Alpargatas to snap up more Rothy's shares within the first four years post-transaction.
- The resulting valuation of Rothy's post-investment? A cool billion dollars! Co-founders Stephen Hawthornthwaite and Roth Martin will continue to be significant equity holders, maintaining control over operations.
The Inside Dish:
A Brazil-based shoemaker purchases a substantial share in Rothy's, a U.S. footwear brand.
This strategic investment sets Rothy's on a fast track for worldwide domination. The funds will fuel Rothy's international expansion, particularly in Asia, Europe, and (you guessed it) Brazil. Hawthornthwaite expressed excitement about the new partnership, stating, "With Alpargatas' backing, we'reset to conquer the global market, expand our physical retail presence, refine our product lineup, and quicken our stride towards circular production by 2023."
While digital channels drive 98% of Rothy's sales, they've already ventured into the brick-and-mortar domain with stores in major cities like San Francisco, Boston, New York, Los Angeles, and Chicago. By broadening their horizons physically, they follow the trend of digital-first companies as customer acquisition costs escalate—and it's a swell way to boost brand recognition, too.
Alpargatas' CEO, Roberto Funari, explains the partnership as a means to intensify their operations and up their North American market game. He adds, "We're psyched to work alongside Stephen, Roth, and the entire Rothy's gang to spread the brand far and wide through new retail and e-commerce channels."
In 2021, Rothy's made some headlines with strategic moves, breaking into the men's category in the spring with new sneakers and loafers (the most demanded category, indeed) and announcing a goal to achieve circular production by 2023. There's no telling when Asia, Europe, and Brazil will see these prime Rothy's goodies, but you can bet your souled-out sneakers they're on their way.
- The strategic partnership between Alpargatas and Rothy's, fueled by a significant investment from Alpargatas, aims to propel Rothy's towards global dominance, expanding their physical retail presence and refining their product line.
- This collaboration also intends to accelerate Rothy's efforts towards achieving circular production by 2023, a goal aligned with their focus on sustainability.
- The increased presence in Asia, Europe, and Brazil, as a result of this partnership, will introduce Rothy's products to new markets, boosting their reach in the North American market and beyond.
