The reasons why, among many, Birkenstock chose L Catterton

The reasons why, among many, Birkenstock chose L Catterton

Birkenstock chose L Catterton, private equity fund supported by LVMH. The parties have begun closed negotiations to decide on the potential sale of the iconic German brand. An agreement could come as soon as March. Other interested parties, among which is CVC Capital Partners, will need to wait and craft a new offer. Birkenstock’s evaluation should be of around 4 to 4.5 billion euro.

Birkenstock chose L Catterton

Why did Birkenstock choose to focus on L Catterton? First reason: because the US-based investment fund has the most experience with developing family-owned brands. Second: L Catterton guarantees the German brand the highest growth in the Asia region. These are at least the indiscretions published by Bloomberg, which cites anonymous sources close to the operation. L Catterton is crafting the offer, while it’s allegedly not yet done with its due diligence.

CVC isn’t quitting

CVC Capital Partners was the first to set eyes on Birkenstock. As suggested by the sources cited by Bloomberg, the latter was the first to present an offer. And the fund is still interested in closing the deal, but now it will need to wait to see what will happen with the Germans and rival L Catterton. Birkenstock’s owners may already choose the winner within the ne next few months. WWD claims this may happen as soon as March. That being said, it’s not yet certain that the family will give up control of the brand: they could in fact choose to bring in a minority stockholder for now. The game’s afoot, and the course of Dr. Martens does teach a lesson. In that case, for example, Permira had evaluated the option of selling the brand, but then opted to initiate the brand’s IPO.

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