Grupo Soma Signs Agreement to Buy Cia. Hering

On April 26th, retail giant Grupo Soma sent shockwaves throughout Brazil’s fashion sector by announcing an agreement to acquire Cia. Hering in a R$5.1 billion deal advised by BR Partners, G5 Partners and Santander as financial advisors, as well as by top-tier Brazilian law firms Machado Meyer Advogados and Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados.

The announcement comes days after Cia. Hering’s refusal of a R$ 3.3 billion offer by Arezzo, with the former citing that the offer in question did not serve the best interests of its shareholders and of Cia. Hering itself.

If approved by the Administrative Council for Economic Defense (CADE) and by the shareholders of both companies, Cia. Hering shall become a subsidiary of Grupo Soma, which owns 10 major fashion brands, such as Animale, Farm, Cris Barros and Maria Filó, amongst others, and has over 5,000 employees. Grupo Soma held its IPO in July of 2020, raising R$1.8 billion in the process, with the goal of funding M&As in the fashion industry.

“The transaction offers favorable opportunities to generate value by capitalizing on the operational synergies of the parties, mainly in reference to the growth of revenue and gross margin, as well via more efficiency in expenses and investments.”, announced Grupo Soma through an official statement.