Wednesday, February 1, 2023

Birkenstock considers sale to private equity group CVC

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Birkenstock, the German family company known for its sturdy sandals, is considering a sale to private equity group CVC in a deal that could value it at more than € 4 billion, including debt.

The Permira buyout group and at least one other private equity group have also expressed interest in buying Birkenstock, people briefed on the matter said.

The company, which dates back to 1774, has been exploring a sale for months with the help of Goldman Sachs bankers, according to two people with first-hand knowledge of the matter. After initially soliciting the interest of his competitors in the sector, he turned to private equity bidders.

While talks with CVC have been going on for months, a final deal is not imminent, one of the people said, and there is no certainty that a deal will be reached. The status of talks with Permira was unclear.

CVC hopes to increase sales in new markets while capitalizing on the brand’s loyal customer base, a person close to the deal said, adding that its executives believe Birkenstock’s popularity is less likely to fluctuate with fashion than it does. of Dr Martens, which will allow owns and plans to list.

The deal would mark the latest private equity deal involving a European footwear company, after Permira bought a group of luxury sneakers Golden goose from Carlyle in February. Permira and the German buyout group Triton last year surrounded The American sports equipment manufacturer Reebok, offered for sale by its German parent company Adidas.

Bloomberg first reported the discussions with CVC.

Birkenstock employs 3,800 people and achieved € 721.5 million in revenue and € 129 million in net income for the year through September 2019, according to a company file. Net profit increased 40 percent from the previous year.

The company’s shoes are made at a factory in Görlitz, Germany, which operates three shifts so the shoes can be made around the clock. It started selling shoes directly to consumers online in 2016.

CVC and Permira declined to comment and Birkenstock did not respond to a request for comment.


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