Rothy’s, a US-based company that produces footwear from recycled plastic, has announced that Brazilian lifestyle company Alpargatas (which owns the flip-flop brand Havaianas) has made a strategic investment to acquire 49.9% of Rothy’s. The investment consists of USD 200 million primary capital, followed by USD 275 million to acquire Rothý’s shares from existing shareholders. Post-investment, Rothy’s is estimated to be valued at USD 1 billion. 

The deal will also give Alpargatas a call option to purchase additional shares from shareholders during the first four years after the initial investment. Post-acquisition, Rothy’s co-owners will continue to have a majority equity stake in the company, overseeing the operations, while Roberto Funari (CEO, Alpargatas) and Stacey Brown (independent director, Alpargatas Investment) will join Rothy’s board of directors.

Through the acquisition, Rothy’s expects to expand into global markets, increasing retail presence and attracting more customers. The company will also be able to increase its factory operations beyond China, given that Alpargatas operates six manufacturing plants across Brazil. Rothy’s also reported that with the support of Alpargatas, it aims to reach circular production by 2023, with continuous product development.

Alpargatas is a leading footwear company that sells a range of brands across 130 countries. The acquisition will allow Alpargatas to add Rothy’s to its network of branded products and enhance its global strategy with an increased presence in the North American market.