The news does not stop at Azzas 2154 () – and promise to bring more volatility to the actions.
After the announcement that Thiago Hering, some developments have already appeared on new commands in the unit.
According to Exame, an important unfolding will occur through an acquisition. Azzas is in the final phase of negotiations to acquire Cariuma, a tennis brand founded by former Arezzo Executive, David Python and Fernando Porto.
In addition to expanding its portfolio, the acquisition should bring new leadership to Hering, with Python assuming as CEO of the group’s basic division, thus replacing Thiago Hering. Fernando Porto would come as number 2. The transaction must be completed by the end of the month, according to the news, although the company has not yet confirmed the news.
In JPMorgan’s view, in a challenging market with limited talent availability, this would sound like a “” movement [compra de uma empresa com o objetivo principal de contratar os seus funcionários talentosos, e não necessariamente os seus produtos ou ativos]as it believes that mergers and acquisitions are not part of the company’s short -term agenda, given a complex and turbulent integration process.
“That said, along with the announcement of Hering’s departure, it was like this, despite the potentially unexpected hiring structure, the appointment of the new leadership is not a complete surprise,” the analysts point out.
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Still, they evaluate, the main risk is that the possible target of M&A (mergers and acquisitions) brings noise to the VANS licensing agreement in Brazil, as Cariuma operates in the same segment of Vans – which has recently performed.
However, Cariuma is focused mainly on US and Asia markets, which may limit conflicts of interest.
The bank also ponders that, despite having a solid history in brand management and probably franchises of its previous work at Arezzo, Python has limited experience in the textile/clothing sector.
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“Overall, we believe that this news should bring more noise to the case, as it involves the acquisition of a small brand in the context where part of the company’s simplification agenda is the discontinuation of small rather than essential brands,” he concludes. However, the bank follows with overweight recommendation (above -average market, equivalent to the purchase) to Azzas 2154. On Thursday after announcement, the shares fell modest 1.10%, but were still among the largest Ibovespa casualties on a day of the market.
