Alpargatas S.A., the Brazilian company behind Havaianas, has scooped up a 49.9% stake in sustainable footwear brand Rothy’s.
In a two-step transaction, Alpargatas will invest $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.
According to a release on the new investment, this transaction will fuel global growth for Rothy’s and expand its vertically integrated operations.
Rothy’s co-founders Stephen Hawthornthwaite and Roth Martin will maintain a significant equity stake in the business and continue to oversee operations.
Roberto Funari, CEO of Alpargatas, said in a release, “We are excited to welcome Rothy’s to our portfolio, and admire Rothy’s entrepreneurial, passionate founders and team. We value their digital-first business and loyal customer base, and view this partnership as an important opportunity to advance our global strategy with increased relevance in the North American market.”
“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,” added Hawthornthwaite. “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.”
“Very few footwear brands understand the challenges and unique opportunities that owning a factory presents – and Alpargatas has written the playbook,” said Martin. “We are confident that Alpargatas will be a valuable thought partner for Rothy’s, and look forward to working together to prove that it is possible to run a large-scale, profitable business sustainably and responsibly.”
Founded in 2012, Rothy’s co-founders Hawthornthwaite and Martin set out with a clear mission to create a shoe with style, comfort and sustainable design. Today, Rothy’s is a global brand with a rapidly growing customer base in the U.S. and is poised to increase its international reach, particularly in Asia, Europe and Brazil. A digital-first business with 98% of sales coming from online channels, Rothy’s has built a loyal community of well over two million customers and since expanded beyond women’s footwear into the men’s and accessories categories this year.