The massive purchase of Hering's beloved shopping company

Hering was purchased by a giant to annihilate Reiner

You don't need to be a huge expert on this topic to come to the conclusion that the Covid-19 pandemic ended up causing a huge crisis in everyone's economy. Many businesses ended up closing their doors. In Brazil, we can mention a positive deal, which is the huge purchase of Hering by a shopping center company.

For those who don't know, in 2021, Grupo Soma, owner of the Farm, Animal, Cris Barros and NV brands, purchased clothing manufacturer Cia Hering. It is worth noting that the negotiations cost neither more nor less than an offer of R$5.1 billion (partly in cash and partly in the form of shares).

According to information from the Exame portal, after agreeing to the deal, Hering underwent a real change. In 2022, Roberto Gatahi, President of Grupo Soma, spoke about the topic, but praised the company and talked about the next steps.

“It is a very dangerous mission and must be done very responsibly, since we are talking about a company with a 140-year history and amazing resilience. Whatever happened, Hering was there generating R$250 million in cash every year.

It is worth noting that Grupo Soma had already diagnosed Hering's condition. The movement, to those who didn't know behind the scenes, seemed like an almost thoughtless reaction to the proposal he made Arezzo & Co I did it for the century-old company in Santa Catarina. They offered R$3.4 billion.

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What changes have they promoted in the store?

“We were already talking to a major Herring shareholder about the possibility of a merger and I was already studying the company, talking to franchisees and former executives,” he said. In fact, Grupo Soma has planned some changes for Hering to remain the same.

One of the expectations of owners is the relationship with franchisees. The idea was to promote a revenue-sharing system, the same dynamic that Grupo Soma already embraces today through its multi-brand channel. By sharing the revenue, the franchisee is protected as well as the global equity of the company.