The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
L Catterton, the private equity firm backed by luxury French fashion house LVMH, is considering strategic options for Birkenstock including an initial public offering, according to people familiar with the matter.
The iconic German sandal maker could be valued at more than $6 billion in an IPO, said one of the people, asking not to be identified because the details are private.
The firm is working with advisers including Goldman Sachs Group Inc. and JPMorgan Chase & Co. on a potential listing in the US, the people said. An IPO could happen this year or next year, the people said.
Deliberations are ongoing and L Catterton could decide against any deal, the people added. Representatives for L Catterton, Birkenstock and Goldman Sachs and JPMorgan declined to comment.
A transaction would come more than two years after the private equity firm and the family investment company of billionaire Bernard Arnault acquired a majority stake in Birkenstock, valuing the company at $4.9 billion. Brothers Christian and Alex Birkenstock retained a stake in the firm.
The US IPO market is showing signs of emerging from a deep slump after restaurant chain Cava Group Inc. raised $366 million last month. The stock is up 78 percent since then.
A storied brand founded nearly 250 years ago, Birkenstock has become a high-fashion item, launching collaborations with luxury names such as Dior, Manolo Blahnik and Valentino. The style has also spawned a range of luxury variants from labels including Celine and Givenchy.
Birkenstocks have been sold in the US since 1966, after a woman named Margot Fraser discovered them on a German vacation and began importing the product. Popular with bohemians and fashionistas, the sandals enjoyed a faddish bump in the 1990s and 2000s when celebrities including Kate Moss and Heidi Klum began strolling around in them.
More recently, Birkenstock has been investing heavily in building out its production sites in Germany. This includes a new €120 million ($131 million) factory in Pasewalk, a town north of Berlin. The company has about 5,500 employees.
By Crystal Tse and Eyk Henning
The French brand, founded and run by Jean Touitou since 1987, is looking to the LVMH-backed private equity firm to help it scale internationally.
Private equity firm L Catterton is selling its Danish fashion brand Ganni in a deal that could fetch up to $700 million, two people with knowledge of the situation told Reuters.
This week BoF reported that Farfetch is seeking a ‘white knight’ to avoid collapse. A deal with Amazon could be the answer, writes Imran Amed.
As sportswear rivals jockey for position ahead of next year’s Paris Olympics, Adidas is aiming to stamp its brand on smaller events such as breaking, climbing, skateboarding and BMX.
BoF Careers provides essential sector insights for fashion professionals in retail this month, to help you decode fashion’s retail landscape.
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