Birkenstock has struck a deal to sell a majority share of Birkenstock Group to private equity firm L Catterton and its affiliates with the inclusion of Financière Agache, Bernard Arnault’s family investment company, according to a Friday (Feb. 26) press release.
“In L Catterton and Financière Agache we have found not just shareholders, but also partners for achieving our global growth ambitions. They have a great deal of know-how and excellent access to international markets,” Birkenstock Group CEO Oliver Reichert said in the release.
The acquisition price and the particulars of the arrangement were not made public, while the deal is “subject to the usual antitrust audits,” according to the release.
Birkenstock said the “expansion of the company’s shareholders” is the next logical move to allow for formidable expansion in markets like India and China. In America and Europe, Birkenstock will grow its market position by investing in German sites and growing “production, logistics and sales operations,” according to the release.
Furthermore, the firm intends to invest in continuing to build out its direct-to-consumer operation and the growth of its online shopping platforms.
The “unique capabilities,” global platform and network of L Catterton will provide Birkenstock “not only with new opportunities, but the resources to support the continued growth in the brand and the business,” L Catterton Co-CEO Michael Chu said in the release.
L Catterton, an international consumer-focused private equity firm, has roughly $23 billion of equity capital throughout its fund strategies and 18 offices globally.
Birkenstock’s history dates back to the 1700s. At that time, Johann Adam Birkenstock worked as a cobbler in Germany. The firm launched its sandals a few hundred years later — in the 1960s.
The firm’s shoes have been sold in the U.S. since the 1960s once Margot Fraser discovered them on a trip to Europe.
The sandals experienced a “faddish bump” in the 1990s and 2000s, as well-known people such as Kate Moss and Heidi Klum began walking around in them.