Brazilian J&F sells Havaianas maker for 850 million pounds

London - Alpargatas, the company behind the iconic Brazilian flip-flop brand Havaianas, has been sold for 1.1 billion US dollars (850 million pounds). J&F Investimentos SA has agreed to sell its controlling stake in the flip-flop manufacturer to three investment firms held by some of Brazil's leading banking families.

Scandal owner J&F sells stake in Havaianas for 850 million pounds

Cambuhy Investimentos, Itaúsa Investimentos, and the fund Brasil Warrant signed a sale agreement for the acquisition of all shares in Alpargatas according to securities filings on Wednesday. The terms of the agreement see Cambuhy Investimentos, Itaúsa Investimentos, and the fund Brasil Warrant splitting J&F's 86 percent stake in Alpargatas between them, with Itaúsa retaining a 27.12 percent hold in Alpargatas.

The three parties are set to sign a shareholders' agreement for the shared management of Alpargatas, which will contain, among other provisions, "a majority and equal appointment of members of the Board of Directors of Alpargatas," according to a statement from Itaúsa. Alpargatas, the largest Brazilian footwear company, has remained very successful over the past years, both at home and abroad, selling 200 million pairs of Havaianas footwear a year.

The highly-anticipated sale is said to the be first from J&F, the holding company from Brazilian-billionaire brothers Wesley and Joesley Batista, since it was hit with a record-high leniency fine after being linked to a series of corruption scandals. Proceeds from the sale of the São Paulo-based Alpargatas are believed to go to helping J&F repay its debt and fines of more than 3 billion US dollars.

Alapargats shares have grown 56 percent this year ahead of the widely anticipated sale. The company, best known for its leading footwear brand Havaianas, also owns a wide array of Brazilian fashion brands, such as beachwear label Okslen. Together the three investment firms aim to continue developing the company's strategic plan. "Itaúsa, BW and Cambuhy are confident that Alpargatas, with the collaboration of its employees and executives, will continue its growth trajectory and will be able to identify new opportunities that maximize the value creation for stakeholders."

Photos: Courtesy of Havaianas, website