Birkenstock, the renowned footwear maker, is reportedly gearing up to go public with an initial public offering (IPO) in September, which is expected to value the company at over $8 billion. Sources familiar with the matter revealed that private equity firm L Catterton, backed by luxury fashion house LVMH, is collaborating with Goldman Sachs and JPMorgan Chase on the potential listing of Birkenstock in the US. The IPO could potentially value the German sandal maker at up to $10 billion.
Although there has been no official confirmation on the size and timing of the IPO, sources indicate that discussions are still ongoing. Both Birkenstock and L Catterton declined to comment on the matter.
Birkenstock, established almost 250 years ago, has evolved into a high-fashion brand and has collaborated with prestigious names such as Dior, Manolo Blahnik, and Valentino. It has also inspired variations from well-known labels like Celine and Givenchy. Birkenstock sandals have been available in the US market since 1966.
Last year, the company’s revenue surged by 29% to approximately €1.2 billion ($1.3 billion), resulting in adjusted earnings of €394 million. These figures were disclosed in a lender presentation seen by Bloomberg News. Birkenstock has been making significant investments in expanding its production sites in Germany, including a new €120 million factory in Pasewalk, a town north of Berlin.
The potential IPO of Birkenstock follows more than two years after L Catterton and billionaire Bernard Arnault’s family investment company acquired a majority stake in the business, valuing it at around €4 billion.
The US IPO market appears to be rebounding after an 18-month period of stagnancy. The recent successful debut of restaurant chain Cava Group Inc. has boosted confidence in the market.
Links:
1. Bloomberg News
2. LVMH
