Alpargatas Acquires 49.9 Percent Stake in Rothy’s

Alpargatas (Sao Paulo) has acquired a 49.9 percent stake in Rothy’s (San Francisco), the sustainable footwear brand, according to a company press release. The “strategic investment” is intended to help the brand expand its vertically integrated operations as well as fuel international growth.

After a $200 million investment toward primary capital from Alpargatas, the Brazilian company will also acquire $275 million shares from current stakeholders. The deal will create a post-investment valuation of $1 billion for Rothy’s. Rothy’s Co-Founders Roth Martin and Stephen Hawthornthwaite will continue overseeing operations and will also “maintain a significant equity stake” in the business.

Founded in 2012, Rothy’s specializes in creating sustainable footwear, mainly from single-use plastic water bottles. It’s “digital-first” and receives 98 percent of its business from online channels.

Roberto Funari, CEO of Alpargatas, says, “Alpargatas has built a portfolio of desired and hyperconnected brands, including the world’s largest open footwear lifestyle brand, with over 260 million pairs of flip flops sold annually across more than 130 countries … 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. We are eager to work with Stephen, Roth and the entire Rothy’s team to expand the brand’s community all over the world through new retail and e-commerce channels.”