default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Report: Birkenstock in Talks for $5 Billion Sale to CVC Capital

The 250-year-old footwear brand’s family owners are in advanced negotiations with the private equity firm and Breitling owner, according to people familiar with the matter.
Birkenstock street style at Milan Fashion Week in September 2018
Birkenstock street style at Milan Fashion Week in September 2018. Shutterstock

Birkenstock, the German company behind the iconic sandals worn by hippies and preppies alike, is in talks to be taken over by CVC Capital Partners, according to people familiar with the matter.

The private equity firm is in advanced negotiations with the family owners of the nearly 250-year-old brand, according to the people, who asked not to be identified discussing confidential information. A deal could value the business at more than $4 billion ($4.8 billion) including debt, the people said.

While Birkenstock launched its sandals in the 1960s, the brand’s roots stretch all the way back to 1774, when Johann Adam Birkenstock was working as a cobbler in the German state of Hesse. That heritage has appealed to shoppers who gravitate toward products with a backstory.

CVC already controls high-profile brands like Breitling SA, the Swiss watchmaker it took over in 2017 that’s known for the aviation-themed timepieces worn by actor John Travolta. The buyout firm also owns German beauty chain Douglas GmbH, which has struggled with its debt load amid the coronavirus lockdown and online competition.

No final decisions have been made, and there’s no certainty the discussions will lead to an agreement, according to the people. A representative for CVC declined to comment, while a spokesperson for Birkenstock couldn’t immediately comment.

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. The style has also spawned a range of luxury variants from labels including Celine and Givenchy.

Since 2013, Birkenstock has been led by co-chief executive Markus Bensberg and Oliver Reichert. The company sells its products, which also include belts, bags and beds, in some 90 countries, according to its website.

Birkenstock sold 23.8 million pairs of shoes in the financial year through September 2019, which helped sales rise 11 percent to €721.5 million. Net income for the period rose 40 percent to €129 million, according to a filing.

By Jan-Henrik Förster, Aaron Kirchfeld and Eyk Henning

In This Article
Topics
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Chronicle the ‘Retail Apocalypse’ and emerging retail models, including DTC brands.

When the American sportswear retailer announced the return of its controversial founder as CEO Wednesday, investors were perplexed. BoF unpacks why Plank may be back — and the challenges that lie ahead in his bid to transform its fortunes.



By investing in an elevated product and shopping experience, Spanish retailers Inditex and Mango are seeing tremendous growth despite fierce competition from the likes of Temu and a cash-strapped consumer.


The ByteDance-owned app’s e-commerce play has been met with mixed response from users. Still, sales seem to keep ticking up.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024