Commodities

Brazil shoe retailer Arezzo to take over Reserva for $128 mln

Credit: REUTERS/BRENDAN MCDERMID

Brazil shoe retailer Arezzo said on Friday it had reached an agreement to combine its business with fashion retailer Reserva, valuing the company at 715 million reais ($128 million).

Adds shares, details

SAO PAULO, Oct 23 (Reuters) - Brazil shoe retailer Arezzo ARZZ3.SA said on Friday it had reached an agreement to combine its business with fashion retailer Reserva, valuing the company at 715 million reais ($128 million).

Shares in Arezzo soared more than 9% after the deal announcement, which marks its entrance into the clothing segment, which will increase its addressable market by 3-1/2 times.

Under the terms of the deal, Arezzo will take over all of Reserva's shares, while Reserva shareholders will end up with 8.7% of the shares in Arezzo's holding company.

Arezzo said the acquisition is part of its strategy to expand its brand portfolio.

The move by Arezzo comes despite a drop in shoe sales due to the coronavirus pandemic.

($1 = 5.5797 reais)

(Reporting by Marcelo Rochabrun and Carolina Mandl; editing by John Stonestreet and Jonathan Oatis)

((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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