Birkenstock would be for sale: CVC Capital and Permira are interested

Birkenstock would be for sale: CVC Capital and Permira are interested

The first news is that Birkenstock would be for sale. The second, that the race of private equity funds is already underway to grab the German brand. According to rumours, CVC Capital Partners, which took control of Pasubio tannery in 2017, appears to be in pole position. Among the suitors there would also be Permira (also interested in Reebok), which could invest the proceeds from the listing of Dr. Martens in Birkenstock. The price of Birkenstock exceeds 4 billion euros, including debt.

Birkenstock would be for sale

The German firm has been exploring the sale for months with the help of Goldman Sachs. First, it carried out a survey with competitors in the sector. Then, not finding the counterpart, it expanded the search to private equity funds. And here, according to the Financial Times, it would have found interested interlocutors. The first is CVC. The negotiations between the parties would have started a few months ago, but an agreement has not yet arrived, and there is also the possibility that it will not come. Permira would also be among the suitors (but there is no news regarding possible talks) and, according to the Financial Times, there would be at least one other fund in the race.

Growth plans

The Coronavirus pandemic has pushed Birkenstock’s sales up. The figures for the financial statements as at September 30, 2020 are not known, but CEO Oliver Reichert announced that revenues would have exceeded those of the previous year (721.5 million euros). Meanwhile, margins are slightly down. The brand, which makes extensive use of Italian leather, is still owned by the Birkenstock family, and is managed by external managers. The goal is to exceed one billion euros within (at most) two years. Proof of this is the news of the entry into the Indian market through the partnership with Seva Group.

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