There is the official. The giant of French luxury Lvmh bought Birkenstock, the German manufacturer of the famous cork-soled sandals, through the L Catterton and Financie're Agache funds controlled by the Arnault family.
The purchase amount has not been disclosed, but according to numerous rumors, it would be a 4 billion euro deal.
This is “the logical step to achieve strong growth also in future markets such as China and Indiathe German group announced in a statement. The two owners, Christian and Alex Birkenstock, see L Catterton and Financie're Agache as partners “with the same strategic and long-term vision as the family”.
“We will help Birkenstock realize its great growth potential,” he said Bernard Arnault, mentioned in a press release.
Birkenstock, born as a manufacturer of orthopedic insoles, has become famous all over the world for its cork footbed sandals, which have now become fashionable internationally, gaining fashion shows and collaborations with brands such as Paco Rabanne, Valentino or Céline. The company from Linz on the Rhine has 4300 employees; in 2019 it has sold 24 million shoes and boasts a turnover of 700 million euros.
For almost two months, news of the possibility had been circulating Birkenstock sale and press rumors had indicated the two British funds, Permira and CVC Capital Partners, as eligible buyers. But on February 1, a denial had arrived from the same company that had spoken of "hypotheses and speculations“. Then the main global luxury giant entered the scene, to which the Germans could not say no.
After the announcement of the operation, in Paris the Lvmh title it dropped 0,72%, on a difficult day for all European stock exchanges.
