3rd of March. from 2023
Brazilian company Arezzo & Co is taking its first steps towards its international expansion strategy based on acquisitions. On Friday, March 3, the company announced the acquisition of a majority stake in the contemporary Milanese footwear brand, Paris Texas, founded in 2015 by Annamaria Brivio and Massimo Baltimora.
The agreement provides for the acquisition of 65% of the shares of Paris Texas. The business has a total value of 130 million reais, or $25 million, of which $10 million will flow into Paris Texas’ operating cash, while $15 million will be paid to the brand’s two founders.
Arezzo&Co, a group controlled by the Birman family, manages a portfolio of 21 own and licensed brands in the fashion sector, with a particular focus on footwear, namely Arezzo, Schutz, Anacapri, Alexandre Birman, Brizza, Fiever, Alme, Reserva, My Shoes, Carol Bassi, Vans, Oficina Reserva, Reserva Go, Simples, Reversa, Reserva Ink, Reserva Mini, Unbrand, BAW Clothing, TROC and Vicenza, in addition to the ZZ Mall market, with revenues of over US$1.2 billion in time past and a market capitalization of $1.6 billion.
To date, CEO Alexandre Birman’s eponymous brand is Arezzo&Co’s only luxury brand. The investment in Paris Texas is therefore another indicator of the Brazilian group’s expansion plans in the global luxury footwear category, but above all it is an indication of Arezzo&Co’s desire to explore its operational capacity to reach new markets, especially in Europe, which remains almost unexplored for the group. Birman said in a statement that it is identifying other small and medium-sized companies with strong awareness in which the team can introduce unique vertical design capabilities and supply products, distribution omnichannelespecially in the United States, and the financial ability to leverage growth across multiple sales channels.
The founders of Paris Texas will retain a 35% stake in the business and continue to manage the brand’s operations and direction independently, supported by Arezzo&Co’s global infrastructure and strategic expertise. “This partnership will allow Paris Texas to increase international expansion not only through wholesale channels, but also to open up the retail market, increasing brand awareness around the world,” Annamaria Brivio and Massimo Baltimora said in the statement.
In the same press release, Alexandre Birman defines Paris Texas as “a brand in strong growth, with a strong position in the contemporary day and night footwear segment. The company quickly attracted the attention of major media outlets and influencers around the world. Its design and quality offer the kind of value today’s consumers are looking for, and we believe the level of craftsmanship has the potential to resonate with even more trendsetters around the world.”
For the CEO, the Milanese brand is “ready for significant growth and, thanks to our partnership, will be able to leverage the experience of Arezzo&Co to maximize value. Our company is committed to advancing the DNA and brand equity that Paris Texas has built and is excited to explore future opportunities for growth.” According to Birman, the purchase of “Paris Texas is the beginning of a new era for the group , founded by my father, Anderson Bierman, who has been in the fashion industry for over 50 years.”
In Paris Texas style, Parisian elegance meets Texas toughness. Sleek, sexy heels sit side by side with chunky cowboy heels. Sheer mules compete with wide boots. They are shoes designed for versatile women who lead an intense and full life, who are not afraid to be sexy, explains the company. Paris Texas is manufactured in Italy and sold by over 250 luxury retailers including Mytheresa.com, Bergdorf Goodman, Brownsfashion.com, Galeries Lafayette, Harrods, Luisa Via Roma, Level Shoes, Saks Fifth Avenue.
The operation carried out by Arezzo&Co follows, in just two months, the purchase of the Brazilian brand Vicenza, which has a turnover of 80 million reais and remains one of the largest independent women’s footwear brands in Brazil.
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