LA Private

L Catterton plans $11 billion IPO for Birkenstock

L Catterton, the private equity firm backed by luxury French fashion house LVMH, is gearing up to launch an initial public offering (IPO) of Birkenstock as early as September, according to sources familiar with the matter. The IPO may value the renowned German sandal maker at more than A$11.9 billion (US$8 billion).

Working alongside Goldman Sachs and JPMorgan, L Catterton is exploring the potential listing of Birkenstock in the US, as reported earlier this month by Bloomberg News. The IPO could set the company’s value at up to $US10 billion, as suggested by one insider. Birkenstock has experienced a boost in sales recently, partly attributed to the success of the blockbuster Barbie movie, where the lead character, portrayed by Margot Robbie, dons a pair of pink Birkenstocks in a scene.

Although discussions are still in progress, no final decisions regarding the IPO’s size or timing have been reached yet. Those familiar with the matter requested anonymity as they were discussing confidential information. Both Birkenstock and L Catterton representatives have declined to provide comments.

With a history spanning nearly 250 years, Birkenstock has evolved into a high-fashion brand, collaborating with luxury names like Dior, Manolo Blahnik, and Valentino, and inspiring variants from labels such as Celine and Givenchy. The brand’s sandals have been sold in the US since 1966.

Birkenstock’s revenue witnessed a remarkable 29% rise to approximately $1.2 billion last year, resulting in adjusted earnings of $394 million, according to information from a lender presentation seen by Bloomberg News. The company has been making significant investments in expanding its production sites in Germany, including the establishment of a new $120 million factory in Pasewalk, a town located north of Berlin.

If the IPO goes ahead, it would come more than two years after L Catterton and the family investment company of billionaire Bernard Arnault acquired a majority stake in Birkenstock, a deal that valued the business at around $4 billion. The IPO represents a significant step in Birkenstock’s journey, offering investors a chance to take part in the growth and continued success of this iconic footwear brand.