Birkenstock, the maker of the iconic sandals that have existed since 1774, is rumoured to be preparing for a potential IPO in September. The company’s iconic sandals were recently featured in the Barbie movie, which triggered renewed interest.
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The company is currently majority-owned by L Catterton, a private equity firm backed by the French luxury fashion house LVMH. The PE firm acquired a majority stake in the sandals manufacturer in March 2021 in a deal valued at roughly €4 billion (about $4.8 billion), beating other contenders.
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If the IPO goes ahead and Birkenstock is valued at $8 billion, this would mark an impressive return for L Catterton in just two short years. The private equity firm also recently listed online beauty products retailer Oddity Tech, which raised over $400 million when listed on the Nasdaq exchange.
The company’s sandals have gained popularity, with younger customers embracing the sandal's bulky look. The company recorded €721.5 million in revenue during the financial year ended in September 2019.
The recent release of the Barbie movie and the feature of the Birkenstock sandal has reignited the social debate around the sandals, which many consider horrendous footwear, including Crocs. However, this has not stopped the company from growing its sales by 29% to $1.3 billion in 2022.
L Catterton was formed in 2016 when LVMH and Bernard Arnault’s family holding company merged with US private equity firm Catterton. The PE firm has since grown from strength to strength and now manages a portfolio worth $30 billion.
The Birkenstock company had retained ownership of the brand since its founding and accepted outside money for the first time from L Catterton in 2021. However, two members of the Birkenstock family retained a minority shareholding in the company.
The company took the private equity money to expand its operations into Asia, especially China and India, with significant growth potential. L Catterton won the bidding for the firm due to its positive history in Asia and history managing family-owned brands.
The company has collaborated with leading designers, such as Dior and Manolo Blahnik, since its acquisition by L Catterton. The firm employs about 3,000 staff and manufactures most of its shoes at its Geerman factory. The shoes are sold in over 90 countries globally.
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