Diadora SpA last week reached an agreement to be acquired by Geox SpA's founder and chairman Mario Moretti Polegato through his family's investment arm, Lir. Speaking to Sports Executive Weekly, Bill Nuttall, president of Diadora America, said the acquisition was good news for the American business.  “I'm excited because this really will bring new money and new energy into Diadora,” said Nuttall.


He noted that Diadora America is a wholly-owned subsidiary of Diadora S.p.A but operates on a stand-alone basis from the parent.  As such, the business is largely unaffected by the transaction.   “We've always been in a very unique situation because we have our own bank credit line so don't really rely on Italy for our cash flow and banking needs,” said Nuttall. “So for us, the deal will largely be business as usual.”


But he said the new owner should be able to better support the brand worldwide, especially in marketing. “The owner is buying this because they see real value in Diadora worldwide and are looking to build off that,” said Nuttall.


Terms of the deal were not disclosed and Nuttall said he could not comment on specifics.


Sources said debt-laden Diadora, which reportedly has debt of around €70 million ($98 million), had been exploring a sale for about five months. The offer from Geox chairman Polegato was chosen over two other offers – both from private equity funds. Diadora said Lir is now in exclusive talks and its offer is the beginning of a final negotiation.
In its statement, Diadora Board President Franco Fasolato said, “Lir's offer has been deemed the most appropriate to follow up the composition with creditors.”

 

He added that the experience the new owners have in footwear and apparel will “ensure the best development of Diadora's assets, together with the preservation of the employment.”


Diadora SpA is expected to eventually be rolled into Geox S.p.A., which is a publicly-held Italian company. Lir owns majority interest in Geox with around a 71% stake.