Birkenstock is set to sell shares to the public for the first time - here's why
Birkenstock is readying itself for an initial public offering that may value the footwear brand at more than €7.3 billion
The owner of Birkenstock, L Catterton, is set to launch an initial public offering (IPO) of the footwear brand as soon as September that may value the iconic footwear maker at more than $8 billion (€7.3 billion), sources with knowledge of the matter said.
The private equity firm backed by luxury French fashion house LVMH is working with Goldman Sachs Group and JPMorgan Chase & Co. on a potential listing of Birkenstock in the US, Bloomberg News reported earlier this month.
A listing could value the German sandal maker at as much as $10 billion (€9.1 million), according to one source. The company’s sales have been boosted of late by the blockbuster Barbie movie, which stars Margot Robbie in the title role donning a pair of pink Birkenstocks in one scene.
Deliberations are ongoing and no final decisions on the size or timing of an IPO have been taken, the sources said, asking not to be identified discussing confidential information. Representatives for Birkenstock and L Catterton declined to comment.
Founded nearly 250 years ago, Birkenstock has become a high-fashion brand, launching collaborations with luxury names such as Dior, Manolo Blahnik, and Valentino, and has inspired variants from labels including Celine and Givenchy. Its sandals have been sold in the US since 1966. Celebrity-approval of the sandals come from countless names like Gwyneth Paltrow, Sarah Jessica Parker, Gigi Hadid, and Julianne Moore.
Birkenstock saw revenue rise 29 per cent to roughly €1.2 billion last year, leading to adjusted earnings of €394 million, according to a lender presentation seen by Bloomberg News. It’s been investing heavily in building out its production sites in Germany, including a new €120 million factory in Pasewalk, a town north of Berlin.
An IPO of Birkenstock would come more than two years after the L Catterton and the family investment company of billionaire Bernard Arnault acquired a majority stake in the business, valuing it at about €4 billion.
The US market for IPOs looks like it’s finally coming back to life after 18 months in the doldrums, boosted by the recent success of restaurant chain Cava Group debut.