Birkenstock switches to L Catterton. The deal is closed, and the German brand announced it on its website. However, the amount disbursed by Bernard Arnault‘s LVMH-backed private equity firm is not known. The overall valuation of the German company should be around 4 billion euros. Brothers Christian and Alex Birkenstock will keep a minority stake. L Catteron beat the competition from CVC Capital Partners. Permira had expressed interest in the brand too.
Birkenstock switches to L Catterton
The German brand, famous for its Italian leather sandals, was in exclusive talks with L Catterton. The decision to close the deal was made “after carefully examining all options”, reads Birkenstock’s statement. This transaction will facilitate further the strong growth in China and India. The brand will invest in German sites, expanding production, logistics and sales. At the same time, the company plans to invest “in direct-to-consumer business and e-commerce,” the note read.
The CEO’s comment
Oliver Reichert, CEO of the Birkenstock group, emphasises maintaining the brand’s traditions, including “made in Germany”. “Birkenstock has grown to become one of the few iconic brands in the footwear industry – adds Bernard Arnault -. We will support the company so that it can fully realise its significant growth potential. “Birkensotck’s financial results for 2020 have not yet been published. According to the Financial Times, revenues for the year ended September 2020 were in line with the 721.5 million euros of the previous year, despite the closures of factories during lockdowns.
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