Permira aims to earn 900 million pounds in 5 years from the sale of Dr. Martens. The British financial company took over the footwear brand in 2014, paying 300 million pounds for it. Today it would have set the selling price at 1.2 billion. A price equal to 14 times the Ebitda of 2018 and well above normal market prices.
A matter of numbers
Permira putting the brand up for sale is not quite the news. Now, however, rumours have been going around about the value of the transaction. Dr. Martens closed last fiscal year with a 30% increase in revenues, up to 454.4 million pounds. Earnings before interest, taxes and amortisation were 85 million pounds last year, a 70% increase compared to 2017. The company has also strengthened its network of stores with 20 new openings, up to to a total of 109 stores. The brand, based in Northamptonshire, was founded in the 1940s by German doctor Klaus Martens.
“With our constant attention to consumers and a non-stop investment attitude, we are committed to growing the brand in the long term. But, also, to remain faithful to our offer of rebel products”, Dr. Martens CEO Kenny Wilson told WWD. “Originals models, driven by our iconic forms, grew by 28% in 2018”.
Image taken from drmartens.com