Brazil Fashion Companies Arezzo and Soma Agree to a Merger

Brazilian trend corporations Arezzo and Grupo Soma stated on Monday they’d agreed a merger to kind an entity with revenues of 12 billion reais ($2.42 billion) to be 54 p.c managed by Arezzo.

The businesses, which can convey collectively greater than 2,000 company-owned and franchised shops and 34 manufacturers, will later select the identify of the brand new firm, which can have Grupo Soma’s shareholders proudly owning the remaining 46 p.c.

The change ratio established within the settlement stipulates that Soma Group shareholders will obtain 0.12 new Arezzo & Co shares for every Soma share they maintain.

The brand new firm will likely be headed by Alexandre Birman, the present CEO of Arezzo & Co.

The merger comes as Brazil’s trend sector, which incorporates Lojas Renner, Guararapes and C&A, has seen growing competitors lately, with rising rates of interest and the doorway of Chinese language on-line fast-fashion retailer Shein within the nation.

By Alberto Alerigi Jr. and Steven Grattan; Modifying by Louise Heavens

Study extra:

Brazilian Footwear Major Arezzo & Co Reports Strong 2022 Revenue Growth

The footwear and equipment conglomerate recorded full 12 months 2022 gross revenues of 5.2 billion reais ($1.01 billion), a 43.5 p.c enhance from the earlier 12 months.