Birkenstock is selling a bulk stake to the American-French private equity firm L Catterton and a related firm, Financière Agache, Bernard Arnault’s family investment company. Arnault appreciates classic brands, especially those with a deep heritage, thus having the intention to significantly increase its potential even more.
Financial terms were not revealed. For several days, Birkenstock had been in private talks with L Catterton. The deal was stated to value the firm at 4 billion euros, or about USD 4.8 billion.
The two left relatives of the founder of the company, Christian and Alex Birkenstock, acknowledge it as an opportunity to enter “this strategic partnership after carefully examining all options.”
Founded by Johan Adam Birkenstock in 1774, Birkenstock remained in the family business until Christian and Alex decided to make a strategic partnership today. Though the Birkenstock brothers will continue to own a minority share, they will stay on with the company.