Birkenstock to Sell Majority Stake to LVMH-Linked Firm in $4.87 Billion Deal -- Update
February 26 2021 - 8:59AM
Dow Jones News
--Birkenstock has reached an agreement to sell a majority stake
to L Catterton and affiliates including Financiere Agache
--The deal values Birkenstock at around EUR4 billion
--The move comes as Birkenstock seeks to grow its Asia
footprint
By Joshua Kirby and Mauro Orru
Birkenstock and Co. said Friday that it has agreed to sell a
majority stake to L Catterton, a private-investment firm linked to
French luxury-goods conglomerate LVMH Moet Hennessy Louis Vuitton,
in a deal valuing Birkenstock at around 4 billion euros ($4.87
billion).
The German footwear maker said it reached the agreement with L
Catterton and its affiliates including Financiere Agache, the
holding company of the family of LVMH's founder, chief executive
and controlling stakeholder, Bernard Arnault.
The deal values Birkenstock at around EUR4 billion, according to
a person familiar with the matter.
The agreement comes after Birkenstock said it is performing
better than ever, having reported a strong year despite the
coronavirus pandemic hammering sales across the industry, and that
it is now seeking to grow in the key markets of China and India as
well as Europe and America.
"The expansion of the company's shareholders is the next logical
step for Birkenstock to facilitate further strong growth in future
growth markets such as China and India," the company said in a
statement.
"In Europe and America, Birkenstock will further expand its
leading market position by investing in the German sites and
expanding production, logistics and sales operations," it said.
Mr. Arnault said Financiere Agache and L Catterton would provide
investment as Birkenstock also seeks to expand its
direct-to-consumer business and e-commerce platforms.
Write to Joshua Kirby at joshua.kirby@dowjones.com;
@joshualeokirby
(END) Dow Jones Newswires
February 26, 2021 08:44 ET (13:44 GMT)
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