Catton Acquired The Iconic Birkenstock Sandals Company With The Support Of Lvmh

2021-02-28   |   by CusiGO

Holding company L catterton has agreed to buy German sandal company birkenstock. The French American company closed the business on Friday, possibly to $4 billion, according to the company. He also made a bid for the German firm CVC Capital Partners Fund, which was close to a deal, but it was l catterton who finally convinced birkenstock’s owners that it was capable of expanding. According to the company, Catton’s portfolio in 18 countries is close to $23 billion.

L catterton is a holding company founded in 2016 and signed by six private equity companies, catterton, LVMH and Bernard Arnault family holding company, Groupe Arnault. The existence of the latter will also affect the decision of sandal manufacturer owners, as LVMH group owns brands such as Mo รจ t Chandon, Hennessy or Louis Vuitton.

“Our global platform and network will not only provide birkenstock with new opportunities, but also provide birkenstock with resources to support the continuous growth of the brand and business,” said Michael Chu, CO executive director of L catterton. Under the terms of the agreement, private equity and the family investment company of billionaire Bernard Arnault will buy a majority stake in berkenstock. Christian brothers and Alex birkenstock brothers will hold shares in the company.

Goldman Sachs advised on the sale, led by Oliver Reichert, chief executive of birkenstock, which “takes a big step forward in the next chapter of our success story.”.

L catterton also owns other textile companies, such as Pepe jeans, bliss, a cosmetics company, and everlane, an online retailer. As far as birkenstock is concerned, it is a brand with a history of nearly 250 years and is famous for its sandals, which are sold to young alternative audiences and become a luxury for many celebrities. In the year before the flu pandemic, the company had sold 23.8 million pairs of shoes (for the fiscal year ending September), with revenue of 721 million euros. In the United States, Birkenstocks was launched in 1966 when Margot Fraser, a tailor and designer, discovered sandals while on holiday in Germany and began to import them. They also produce accessories such as belts or handbags.

Historic family controlled companies like birkenstock hope to take advantage of the growing valuations that drive consumer businesses through this business. Private equity, on the other hand, sees an opportunity to stimulate sales and attract investors through the eventual IPO.