Arezzo (Brazil) Sub-setor: Fashion Retail Investment type: Organic Growth and Consolidation

Arezzo S/A emerges as one of the leaders in the Brazilian fashion retail arena, with gross revenues of R$341.6m (US$ 170.0 m) and sales of 4.4m pairs of shoes, according to data on the 12 months ended Oct.07. The company, which is a result from the combination of two leading companies in the segment, Arezzo and Schutz, will have an outstanding presence in the domestic market with 228 franchises, six owned stores and sales in over 1,500 multi-brand boutiques.

Also, Arezzo S/A has a growing presence in the international market being already present in Portugal and Venezuela through multiple franchise stores and with sales to multi-brand stores in more than 50 countries.

Arezzo was founded in 1972 by Anderson Birman and Jefferson Birman and since then has built a strong retail presence and has developed a second to none brand recognized by its superior product design. Arezzo’s products are designed for women between 25 and 45 years-old and its core competences are based on the development of high-end shoes with a fast fashion concept supported by strong marketing strategy with a national coverage. In the last twelve months ended Oct.07, the company posted gross revenues of US$109.8m (R$220.7m) and sold 2.8m pairs of shoes.

Schutz began its activities in 1995 with the sale of stylish and adventures footwear addressed to a young public seeking both comfort and modern design. Today Schutz is a well established sophisticated feminine brand positioned in the premium segment of the market, with products available in stores in more than 50 countries throughout Brazil, US, Europe and Middle East. In the last twelve months ended Oct.07, the company posted gross revenues of US$60.1m (R$120.9m) and sold 1.6m pairs of shoes.

Tarpon’s goal is to gain exposure to growing retail market through a company with a proven track record in the women footwear fashion industry, an outstanding platform for organic growth and acquisitions, in a favorable macroeconomic scenario with an opportunity for significant multiple expansion.