Brazil sandal-maker Alpargatas to buy Rothy's stake for up to $475 mln

FILE PHOTO:Havaianas flip flops are seen at a shop in Sao Paulo November 23, 2015. REUTERS/Nacho Doce

SAO PAULO, Dec 20 (Reuters) - Brazilian sandal-maker Alpargatas SA, which owns flip-flop brand Havaianas, said on Monday it has reached a deal to acquire a stake in California-based Rothy's for up to $475 million, according to a securities filing.

Alpargatas said it will buy a 49.99% stake in Rothy's, which makes clothes and shoes from recycled products, as part of its global expansion plans. The deal values Rothy's at $800 million.

The acquisition will take place in stages, it said. First, Alpargatas will purchase new shares to be issued by Rothy's for $200 million. An installment of $50 million will be paid on Monday, while the remainder will be paid by the end of the first quarter of 2022.

The second part of the transaction will cost an additional $275 million.

The transaction is subject to approval by U.S. antitrust authorities.

Reporting by Peter Frontini and André Romani Editing by Sonya Hepinstall

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