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